Achieving (more) financial independence for women is not only positive for their self-esteem and position in society. A crucial benefit is also that it provides a more comfortable old age. After all, those who work more - or at least earn more - also accrue a better pension. And that’s badly needed, because the dismal status quo is that many women are a lot worse off than men in that respect: on average, their retirement incomes differ by as much as 40 percent. Sharing their concerns about this are APG CEO Annette Mosman and Yolanda Verdonk, executive director of ABP since 2022. Prior to her board position at ABP, Yolanda worked at the Dutch Railroads, where she rose from accountant to Director of HR & Organizational Development.
What also binds Annette and Yolanda is their determination to promote greater awareness among women around pensions. As pension fund and administrator, it makes sense to work together on this.
There are several causes that lead to insufficient pension accrual, they conclude, as they walk through the sun-drenched Betuwe region. Having children, part-time work, caring for others, divorce: these things all plays a role. The vast majority of care responsibilities still fall to women. A major reason is also the still existing wage gap, says Yolanda. “Whether women work full-time or part-time: the reality is that women are often paid less than men for the same work. Women also often work in sectors where wages are lower anyway, such as healthcare. With the consequence that you then also accrue less pension. And on top of that, the percentages paid into pensions differ per sector. In education and government, things are generally set up well. But I sometimes hear that people and employers in some sectors only pay very limited contributions and therefore people accrue considerably less pension. That has enormous consequences,” says Yolanda.
Wage gap
Annette: “We examined the pay gap at APG in 2019 and then closed it. You had a lot of experience with that in previous jobs.”
Yolanda: “That’s right. A wage gap occurs mainly in organizations where there are no established career paths. That is the root cause. If the successive career steps are formally defined for everyone in, for example, a pay scale, it is more likely for a pay gap to be avoided.”
Annette: “The size of the wage gap also depends on the type of business. For some jobs, you can set a pay scale. But at APG, for example, there are a lot of different jobs. And then there is also another dynamic. It takes women much longer to believe they are ready for the next career step. Men, however, are quick to think that they are quite capable of taking that next step.”
Yolanda: “As an employer, you can stimulate the flow of certain groups, of course. Because it is true that, in general, the female reflection is: can I do it? And a man is more likely to think: I’m just going to do it. So you need HR people in your company who are aware of this and actively guide them. This starts at the very beginning, with the recruitment and selection of new people. And then on to the development and advancement of existing employees.”
Role model
Annette: “One thing that is very helpful is if you have a role model in your environment. My mother worked. It was instilled in me that if you work as a woman, that makes a big difference. You are taught that you are the boss of your own future. That gives you freedom and choices.”
Yolanda: “I recognize that! Role models can play a great, inspiring role. For me, a working aunt I often visited was my role model in that regard. What is also important is for careers to be encouraged at home and the sacrifices that sometimes need to be made to be supported. That makes it easier to make strides.”
Pension deficit
Annette: “At what points does this pension deficit occur? We see this particularly when women have their first child and then start working part-time. If you work three days a week and then end up on your own, of course you can scale up again to more days, but you’re already missing out on accrual in your pension.”
Yolanda: “Divorce occurs around age 40, for many people. Even then it is quite difficult to compensate for a pension shortfall. That’s a lot of catching up to do. So the opportunity for improvement lies in raising awareness before that time, even before children arrive. Or as soon as people say: I’m going to work less, because I also want to be able to do other things that are of value to society. That is an underlying challenge, by the way, because those activities are very important for society and give a lot of personal satisfaction, but often lag behind in financial appreciation.”
Annette: “Yes, all that unpaid work, you really have to include that. How do we get a fairer distribution in that? And how can we compensate unpaid work financially?”