Women face a triple gap in the pension system and, even overcoming it, end up with lower pensions
Women face great challenges in the labor market. Photo: Image generated with artificial intelligence.
TL;DR
- Women face a triple gap in the Colombian pension system: lower labor participation, higher unemployment, and a persistent wage gap.
- Cultural factors, the care economy, and job instability contribute to women's lower participation in the labor market.
- Women experience higher unemployment rates and less access to formal employment, limiting consistent pension contributions.
- Despite similar education and experience, women earn less, impacting their savings capacity and pension amounts.
- Women who access formal employment are disciplined contributors, but their numbers are smaller.
- The cumulative effect of these gaps means fewer women meet the required weeks for retirement.
- A recent reform reducing the number of weeks needed for retirement might have counterproductive effects, potentially lowering savings and pension payouts.
- Some women prefer to extend their working lives to increase pension amounts, and reduced contribution periods could negatively impact this.
- The reforms could lead to reduced accumulated capital and lower replacement rates, especially for higher-income women.