New research reveals women receive 83 cents for every dollar men get in retirement, spotlighting financial inequities
Despite Canada boasting one of the strongest retirement income systems globally, women continue to face significant challenges in achieving financial stability during retirement.
This issue has persisted since 1976, as detailed in the recent research paper ‘Understanding the Gender Pension Gap in Canada,’ released by Ontario's Pay Equity Office and Elizabeth Shilton, a feminist economist and labour lawyer.
The paper reveals that while retirement incomes have generally increased for Canadians, men have benefited more than women, leading to a persistent gender pension gap.
Kadie Philp, commissioner, and CAO of the Ontario Pay Equity Commission, points out, “Women receive $0.83 to every $1.00 a man receives in retirement income. That is a 17 percent gendered pension gap.”
This gap is not just a statistic but a concerning trend that highlights a significant gender disparity among older Canadians, particularly women.
The Gender Pension Gap (GPG) is the disparity in retirement income between men and women, sourced from Old Age Security and Guaranteed Income Supplement, Canadian Pension Plan/Quebec Pension Plan, and private pensions.
In 2020, data showed that approximately 200,000 more women than men aged 65 and older were living below Canada's low-income cut-off.
Even more troubling, 21 percent of women aged 75 and older had incomes below this threshold, which is 51 percent higher than their male counterparts of similar age. This significant inequality demands urgent action.
The report delves into possible reasons behind this stark inequity, finding that women are more likely to earn lower wages and spend fewer hours in the paid labour market compared to men.
These factors contribute to the ongoing gender earnings gap, which in turn affects savings and results in the gender pension gap.
Philp said, “Gendered differences in income, whether while working or in retirement, have multiple and interrelated causes. This report is a must-read for everyone interested in redressing workplace inequities. It also highlights the need for additional research on the impacts of the gender wage gap on women at all stages of their lives.”
