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On the occasion of International Women’s Day, AGE calls on Member States to review their pensions reforms plans and to favour mandatory 1st pillar pensions to ensure that older women will not face additional poverty and social exclusion in old age as a result of an increasing reliance on gender discriminatory 2nd and 3rd pillar pensions. In today’s context of financial crisis and economic downturn, more than ever the focus must be on issues of equity, gender equality and non-discrimination in pension provision.

Differences in the relative situation of older people depend on a number of factors, including the adequacy of the pension systems and the age and gender structure of the elderly populations. As the 2009 Joint Report on Social Protection and Social inclusion indicates, single older women face a much higher risk of poverty than single older men (28% against 20%). AGE members would therefore like to reiterate their call for strong state controlled pensions, guaranteeing adequate income in old age for all, as the current financial crisis provides clear evidence that supplementary pensions (2nd and 3rd pillars) cannot substitute for the responsibility of the state in ensuring sufficient pension provision for all and avoid gender gaps in pension provision.

Our members feel that today’s financial crisis demonstrates that the safest pension system remains a strong state controlled mandatory scheme, the so-called 1st pillar. AGE recommends that Member States analyse the impact of the current financial crisis on the adequacy and sustainability of their national pension schemes and tackle the growing poverty among older women who face an inherent disadvantage in access to supplementary pensions schemes due to gender differences allowed by Article 5 of Directive 2004/113/EC. “It is crucial to rethink the overall pensions architecture and take full consideration of their inadequacy with regard to older women, who are one of the groups most at risk,” observed Anne-Sophie Parent, AGE Director, stressing that “statutory pension schemes are the best mean to provide retired people, both women and men, with sufficient income to age in dignity”.

The current financial and economic turmoil requires more attention to be paid to its short and longer term negative impacts on a large segment of older persons and to review the approach favoured by an increasing number of Member States to transfer risks back to individuals through the promotion of supplementary pension schemes as this will hurt older women even more.

Last Updated on Monday, 25 January 2010 13:13