Earnings Differences Persist on Women’s Day: Tackling Pension Gap and Old-age Poverty in Austria”.

Financial Emancipation Remains Elusive

The 113th Women’s Day, which falls on Friday, remains highly relevant as women continue to earn significantly less than men, leading to a widening pension gap and increased old-age poverty. Despite some progress in closing the income gap between genders, the pace is slow, with Austria’s gap being above the EU average.

Data from 2022 shows that the gender pay gap in Austria was 18.4%, an improvement from previous years but still higher than the EU average of 12.7%. Female bankers Gerda Holzinger-Burgstaller and Stefanie Christina Huber emphasized the importance of women taking control of their finances while highlighting these statistics.

The disparity in income is due to several factors, including women working in lower-paying industries, fewer women holding management positions, and taking on more unpaid care work. This results in a pension difference of 41.1% between men and women, with women experiencing a 50% higher risk of old-age poverty.

Outdated gender roles and a lack of financial knowledge contribute to the wage gap. Women tend to take on more responsibility for everyday expenses while men often manage investments and financial decisions. This imbalance extends to savings behavior, with fewer women investing in alternative forms like securities for retirement.

To achieve true gender parity, it is crucial that women take proactive steps to educate themselves about finances, invest wisely, and challenge traditional gender norms in financial decision-making. By empowering women to take control of their financial futures, we can make significant progress towards closing the income gap and reducing old-age poverty for both genders.

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