In Germany, as in many other countries, there is a gender gap in the value of old-age pensions reflecting differences in the career patterns of women and men. Traditionally women are more likely than men to take time out from work to care for family members, particularly young children and older relatives. This has a two-pronged impact on the levels of old-age pensions that women receive: firstly, it shortens working life and therefore reduces the number of contributions made towards a final pension and, secondly, career breaks tend to have a negative impact on income levels so that the value of these contributions is lower.

Host Country : Germany

Place and date : Berlin, 3. - 4.11.2011

Peer countries : Austria - Czech Republic - France - Hungary - Italy - Lithuania - Luxembourg - Netherlands - Spain - Sweden

Stakeholders : AGE, EWL

Two studies carried out in Germany will be the focus of the Peer Review. The first assesses the nature of the pension gap in Germany - the scale of the gap and how it affects men and women with different career histories. The second investigates the origins of the family-related time-outs that give rise to the gender differences in final pensions. Together these studies will lead to a better understanding of how the gender pension gap arises and thereby contribute to the development of policies to address the issue.

The Peer Review offers an opportunity to learn about the situation in different countries. To see, for example, the extent to which a pension gender gap exists and to what extent this reflects differing career patterns of men and women. Moreover, it provides an opportunity to learn and share best practice as regards instruments and policies to deal with the issue, for example through measures to address the impact of career breaks. The main messages of the Assessment of the social dimension of the Europe 2020 strategy by the Social Protection Committee highlight that maximising employment years and minimising the effects of career breaks is crucial in ensuring future pension adequacy and long-term financial sustainability of pension systems.

Peer Review manager

Ms Monika Natter (ÖSB Consulting GmbH)