Study finds gender pay gap persists in retirement and pensions

Canadian women continue to face challenges in securing financial stability during retirement, as highlighted in a recent report by Ontario’s Pay Equity Office. The report, titled “Understanding the Gender Pension Gap in Canada,” reveals that men have consistently fared better than women in their golden years, with the gender pension gap widening over the years.

According to the report, the gender pension gap was 15 percent in 1976 but increased to 17 percent in 2021, despite women’s increased labor force participation. This gap translates to women receiving $0.83 for every $1 a man receives in retirement income. The average retirement income for Canadian women in 2021 was $36,700, with the median income at $29,700.

Factors contributing to the gender pension gap include childbearing and child-rearing responsibilities, leading to lower employment rates and more part-time work for women. Additionally, unpaid domestic labor and the existing gender wage gap in Canada play a role in the disparity in retirement income between men and women.

The report also points to historical biases in Canada’s public pension system, which was designed for heterosexual couples with a male counterpart. The findings underscore the need for further research on the impacts of the gender wage gap on women at all stages of their lives.

Overall, the report highlights the systemic challenges that contribute to the gender pension gap in Canada and calls for action to address these disparities and ensure financial security for all Canadians in their retirement years.