Mind the Gap: Understanding the Gender Pension Gap in the Netherlands

In November, the annual "Pensioen3Daagse" campaign by Wijzer in Geldzaken reminds everyone working in the Netherlands to take stock of their retirement savings. This year's focus highlighted a concerning disparity: the gender pension gap. Research reveals that women in the Netherlands receive, on average, 40% less pension income than men upon retirement—a significantly larger gap than in many other EU countries, according to Netspar.

Why Does the Gender Pension Gap Exist?

Several factors contribute to this financial imbalance:

1. Part-Time Work Many women in the Netherlands work part-time, often to balance family or caregiving responsibilities. While this offers flexibility, it also reduces opportunities to accrue pension benefits.
2. Gender Pay Gap Women in the Netherlands still earn less than men on average for the same roles, which directly impacts their pension contributions and eventual retirement income.
3. Care Responsibilities Traditional gender roles mean women often take on unpaid caregiving tasks, leading to fewer hours in the workforce and, consequently, lower pension savings.
4. Financial Awareness Gap Studies show that women tend to engage less with pension planning and have less knowledge about their financial futures. This can lead to missed opportunities to optimize pension benefits.

What Can You Do About It?

Regardless of gender, it’s essential to take an active role in planning your financial future. Here are a few steps to help close the gap for yourself or your household:

1. Check Your Pension Status Use tools like MijnPensioenoverzicht.nl to see what you’ve accrued so far. This government-supported platform offers a clear overview of your state and workplace pensions.
2. Educate Yourself Pension planning may seem complex, but resources like Wijzer in Geldzaken provide practical guides. Knowledge is power when it comes to financial security.
3. Increase Contributions Where Possible If you’re working part-time, consider increasing your working hours or making additional voluntary pension contributions to boost your retirement savings.
4. Advocate for Equality Support initiatives that address the gender pay gap and promote equal opportunities in the workplace. These systemic changes are key to reducing pension inequality.
5. Discuss Finances with Your Partner If you share household responsibilities, ensure financial arrangements are equitable. This might involve making provisions for additional savings for the lower earner.

Supporting a Balanced Financial Future

The "Pensioen3Daagse" campaign is an excellent opportunity to take control of your retirement planning. Women, in particular, are encouraged to examine their pension situation and seek advice where needed. By taking proactive steps today, you can help secure a more comfortable future—regardless of the statistics.

Need help? If you’re unsure where to start, seek professional advice tailored to your circumstances. Financial planners, like those at our firm, specialize in helping internationals navigate the Dutch pension system.

Take charge of your future—your retirement is worth it!