Pension provision: Five ideas for higher pensions for women

On average, women receive significantly lower pensions than men. This so-called gender pension gap poses a major challenge for retirement provision. How can women’s retirement provision be specifically strengthened?

We investigated this question for the German Insurance Association. The study examines the causes of the gender pension gap and derives recommendations for greater financial independence in old age.

The focus is on differences in statutory, occupational and private pension provision, as well as regional and temporal developments.

Part-time work, lower wages and career breaks reduce pensions

The study shows that despite various reforms and measures, the gender pension gap remains: on average, women receive significantly lower pensions than men. This applies not only to statutory pension insurance, but is also evident in private and occupational pension provision. The reasons for this are structural factors such as lower earned income, more frequent part-time work and career breaks, for example to raise children or care for relatives. These differences mean that women are at greater risk of poverty in old age and are often worse off financially than men in retirement.

Pension gaps are not only due to individual behaviour, but are also significantly influenced by social and institutional conditions. At the same time, a sound understanding of the old-age pension system and actively engaging with one’s own pension entitlements are crucial to improving the pension situation.

More pensions for women: Five ideas for retirement provision

The study formulates five ideas for more independent pensions for women. While the first two recommendations are also aimed at politicians and businesses, the others are intended to help women in particular to actively shape their pension provision and thus set the course for better security in old age.

1. More (paid) work, more pension: Higher employment rates among women and mothers strengthen individual pension entitlements and stabilise the pension system. A rising employment rate secures pension levels, lowers contribution rates and thus has a positive effect on the economy as a whole.
2. Promoting compatibility: A better work-life balance is crucial to increasing the employment rate among mothers and strengthening their pension entitlements. The results show that expanding needs-based childcare provision increases the employment rate and working hours of mothers.
3. Together and fair: In couple households, women earn less on average than men. This limits their savings opportunities and future pension entitlements. Private pension provision based on partnership, which divides the joint household income equally, strengthens women’s savings potential and recognises care work as an important contribution.
4. Take advantage of what your employer offers: Women should actively use company pension schemes, as they are an important supplement to the state pension. Modelling shows that even small returns over a long period of time lead to significantly higher monthly supplementary pensions, supported by government subsidies and employer contributions.
5. Starting early pays off: Saving early and saving for longer create security and increase pensions. A longer savings period leads to higher pensions with lower monthly contributions due to the compound interest effect. Those who start later have to save significantly more to achieve similar pension entitlements.

Our approach

The study is based on an evaluation of various official data sources. Selective modelling, including with our OCCUR social security model, supplements the analysis. Based on the results, we have developed the above-mentioned recommendations for independent pension provision for women. These offer practical advice and concrete guidance on how women can strengthen their pension provision.

Links and downloads

To the study (PDF, in German)

Project team: Dr Oliver Ehrentraut, Paula Kostrzewa, Dr Stefan Moog

Latest update: 17.07.2025