Study: Unmarried mothers at greater risk of pension provision
Published: Wednesday, Nov 29th 2023, 09:40
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The proportion of unmarried couples with children has doubled in the last decade. According to a new study, one in five couples with a child under the age of five lives in a cohabiting couple. Unmarried mothers are exposed to a significantly higher pension risk.
Mothers from unmarried partnerships work an average of 58 percent more hours than married mothers (45 percent), the insurance company Swiss Life reported on Wednesday.
The sharp increase in working unmarried mothers is leading to new challenges in pension provision. Part-time working mothers are less secure than married mothers in the event of separation or the death of their partner.
According to Swiss Life, female pensioners would receive almost a third less pension than men. The main reason for this gender pension gap is the difference in lifetime earnings between women and men, which is primarily a result of mothers reducing their workload after giving birth. Lower earned income would lead to lower pensions in the occupational pension scheme and limit savings opportunities in the third pillar.
Budget situation decisive
The household situation is also a key factor in the differences between the sexes, Swiss Life wrote. The pension difference is greatest for married people who are currently retired, but would have less direct financial impact. Two thirds of the married couples surveyed stated that they would combine their income.
However, the study revealed that the risk of divorce is underestimated. Although a divorce would have negative financial consequences for both people, only a quarter of married men and only a fifth of married women would consider the consequences for their personal pension provision. The pension difference for those divorced today is 15 percent.
Clear role models
According to the Swiss Life study, one explanation for the difference in labor market participation between the sexes is the clear role model. The average workload of men is 93%, while that of women is 54%.
In addition to the role model, constraints are also decisive for participation in the labor market. The survey shows that for a third, the scarce and expensive supply of nursery places is a reason for not working or working part-time.
Overall, only a minority of people of working age seem to be interested in retirement provision. According to the study, only two-fifths of respondents looked in depth at the impact of their own workload on their retirement provision.
As part of the study, 4029 people between the ages of 25 and 64 were surveyed in February and March of this year. The research was carried out by the market research institute Valuequest on behalf of Swiss Life.
©Keystone/SDA
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