Gender, Pension and Retirement Lilach Lurie, Tel-Aviv University Seminar on Aging, Retirement and Pensions: Trends, Challenges and Policy March 27‐29, 2018 Leonardo Hotel Ashkelon Acknowledging with thanks a grant of the National Insurance Institute of Israel

Are you satisfied with your pension arrangement Are you satisfied with your pension arrangement? (Central Bureau of Statistics data, 2012, Israel)

The Gender Pension Gap (Ages 65-79, 2012) (among men and men who receive pensions) Country 40% EU (28 countries) 34.9% US 45% Germany 42% UK 33% Spain 25% Sweden 7% Denmark

Gender Pension Gap Women’s Pension 6,000 Euro Men’s Pension

Causes of the Gender Pension Gap: 1)Severe Legal Discrimination in Pension Arrangements 2) Socio-Economic Conditions 3) Gender Privileges 4) Inequality in Times of Privatization

A. Severe Legal Discrimination in Pension Arrangements Occupational Pension funds did not insure women or married women (examples: the Netherlands, the UK during the 1990s) 2) Women had to retire from work before men (example: Israel) 3) Several public pension arrangements did not allow non-working women to join them

B. Socio-Economic Conditions 1) Unequal Participation in the Labor Market 2) Unequal Years in the Labor Market 3) Unequal Hours of Work 4) Unequal Pay 5) Unequal Pension Coverage

Participation in the Labor Market (OECD 2015 ages 15-64) Men (15-64) Women (15-64) Country 63.5% 50.9% OECD average 65.3% 53.7% US 66.8% 56.4% Australia 57.4% Canada 68.8% 64.4% Sweden 52% 41.1% Spain 65.7% 55.9% Israel

Part Time Work (OECD 2015: rate employed in part time work) Men Women 9.5% 25.9% OECD average 8.4% 17.4% US 12.1% 26.4% Canada 14.2% 38% Australia 10.6% 18% Sweden 7.2% 23.1% Spain 9.4% 23.3% Israel

The Gender Pay Gap (Monthly Wage of Full Time Employees) (OECD data 2011) Monthly Wage Gap Country (2011) 17.78% US 18.25% UK 15.4% Australia 15.93% Sweden 8.6% Spain 18.8% Canada 21.83% Israel

C. Gender Privileges 1) Eligibility Age for Social Security Currently (2014) 11/34 OECD countries provide diverse eligibility ages (Future) 3/34 OECD countries will provide diverse eligibility ages 2) Providing Rights for Widows (but not for widowers)

Eligibility for Social Security Benefits (2014) Men Women Country 66/62 US 65 62.5 UK 67/65/60 Canada 67 Australia Sweden 65 (60) Spain 70 (67) 70 (62) Israel

D. Inequality in Times of Privatization 1) Inequality in Calculations of Annuities 2) Inequality in Management Fees 3) Inequality in Investments (capital returns)

Use of SBMTs (Sex Based Mortality Tables) Insurance Plans Employer Pension Plans Illegal (since 2011) Illegal (since 1986) Europe Legal Illegal (since 1983) US Illegal Canada Israel

Do You Know How Much Management Fees You are Paying Do You Know How Much Management Fees You are Paying? (Central Bureau of Statistics data 2012, Israel)

Policy Implications Equal Opportunities Equal Socio-Economic Conditions: Equal Wage; Equal Participation in the Labor Market; Equal Pension Coverage 3) Equal Privileges 4) Equality in Times of Privatization Equal Management Fees; Equal Pension Literacy; Equal Calculation of Annuities