40.5 percent less

Counting grandchildren in old age: pensions make women poor

Even at work, women usually earn less than men, and this continues in retirement.

(Bild: Jan Tepass)

Old-age poverty in Lower Austria is female. On average, retired women here receive more than 40 percent less pension than men. But why is that?

Imagine if female pensioners in the state were no longer paid a pension from today for the rest of the year. Statistically speaking, this is the case. Because August 4 is Equal Pension Day. And that means: as of today, Sunday, male pensioners in Lower Austria will have received as much money as women for the entire year.

40.5 percent less
The difference in pension amounts between women and men in Lower Austria is currently 40.5 percent. That is 970 euros a month. "This means that women in particular are more often affected by poverty in old age," denounces Markus Wieser, President of the Chamber of Labor.

More care services for children and those in need of care would enable more women to work full-time and therefore also receive higher pensions.

Markus Wieser, Präsident der AKNÖ

Bild: AKNÖ

Unpaid care work
The reasons for this are complex. One is the lower income during working life. Even with full-time employment, these are around 17 percent lower than those of male colleagues.

Another is the disproportionately higher level of unpaid care responsibilities for children and senior citizens in the family. "As a result, the women concerned are often only able to work part-time," says Wieser. And this in turn reduces their later pension.

The current pension system is designed for a full-time working life without interruptions. However, this is not achievable for women in particular due to unpaid care work.

Christiane Teschl-Hofmeister, Soziallandesrätin von Niederösterreich

Bild: krone.tv

Pension splitting possible
The date for Equal Pension Day is moving back slightly every year. "This means that the difference between men's and women's pensions is getting smaller," explains Social Affairs Minister Christiane Teschl-Hofmeister, but emphasizes: "Nevertheless, the gap is far too big!"

She refers to the possibility of pension splitting. This means that up to 50 percent of the man's pension credits can be transferred to the partner's pension account.