Less pension for Dutch women: How can you tackle this?

In the Netherlands, there is a striking difference in pension accrual between men and women. Research even shows that the Netherlands is a frontrunner in this inequality within Europe. This difference has major consequences, especially because many women are not aware of it. Fortunately, there are ways to close this pension gap, so that women can also look to their financial future with confidence.

The gap in pension accrual often arises because women work fewer hours on average than men, for example due to care tasks or part-time work. As a result, they accrue less pension through traditional schemes, and that difference in pension is difficult to make up. Nevertheless, there are several steps you can take to create more financial security for the future.

At Vive, we try to make it easy. This way, every individual can start building their wealth, regardless of how much money or knowledge they have. 

“You can actually arrange everything yourself and that is also quite easy. So you just see that people start playing around with it and start depositing.” – Mariëlle Romeijn

Sector-dependent differences

Certain sectors, in which many women work, offer less extensive pension schemes than sectors with relatively more male employees. This shows that there is also work to be done at the policy level to create equal opportunities. It is important that women in every sector can count on a good pension.

Women invest less often – a missed opportunity

There is a big difference between men and women when it comes to investing. Less than 1 in 5 investors is a woman. This has to do with history: until 1956, for example, married women could not take out their own insurance or withdraw money without permission. That disadvantage still seems to be at play, because today women often know exactly how much money is in their account, but long-term investments such as pensions often remain underexposed.

Despite these barriers, women seem to do well in the investment market. The return for female investors is on average 0.4% higher than that of men, which can make a big difference in the long term. Women are more likely to opt for sustainable investments, take fewer risks and focus more on loss reduction than on profit. These are smart choices for those who value stable growth and financial security. This sustainable nature often makes women's investments more stable and successful in the long term. 

It is important that men and women have equal opportunities when it comes to investing. Investing can be a powerful tool for building long-term financial security, especially when, like many women, you accrue less pension through traditional schemes.

Partner pension: what are the benefits?

A lower pension does not immediately have to be a problem when you build up a pension together with your partner. As long as you are together, you can count on each other. Even in the event of a divorce, you can often claim part of your (ex-)partner's pension, usually divided on a 50/50 basis, or otherwise via a divorce arrangement.

In the event of death, a surviving dependants pension may be available if your pension scheme allows it. Often, when a person dies, their pension also disappears (newsflash, pension funds don't necessarily benefit from you living longer). It remains important to check whether your existing pension scheme is sufficient for your future plans. This way you avoid surprises later.

Vive’s pension pot remains for you and your family, because if you unexpectedly pass away, the accumulated money will go to your family. 

What about the pension gap?

Many Dutch people are unaware of the pension gap between men and women. According to Lisa Brüggen, director of pension think tank Netspar, women accrue 40% less pension on average than men (the relevant study). This difference is due to a combination of factors, such as fewer paid working hours and a wage gap, which means that women accrue less salary and therefore less pension.

Women would like to see this gap closed, but only 18% actively take the time to learn about their own pension, compared to 30% of men. To close this gap, Annette Mosman, CEO of pension administrator APG, emphasizes the importance of awareness: "It is important for women to realize how their choices today affect their pension income for later. Working less now means less salary now and a lower pension later."

Employers, pension providers and the government can play a role in this by properly informing women about the consequences of working part-time and other choices for their pension.

It can amount to hundreds of euros per month. 

Build your own pension – take control of your future!

Do you want to increase control over your pension? You can! For many women, it is a smart step to build up an additional pension through the third pillar: building up an individual pension with tax benefits. By saving in an annuity account, you build up capital, with potential returns because your deposit is invested. This can be a nice addition to your pension.

Tax benefits: The tax benefit you can obtain depends on your annual allowance, the amount you can accrue annually with a tax advantage. This tax benefit can be as high as 37% to 49% of the deposit, which means that the government contributes to your pension fund. 

Please note that the accumulated capital is specifically for your pension and therefore cannot simply be used for other purposes.

Investing for extra security

You can also opt for wealth accumulation through investing without tax benefits. This capital is freely withdrawable and can therefore also be used for other purposes, such as a long trip or a house. At Vive, we like to inform women about the possibilities and benefits of investing, so that more women can use this for their financial security.

Vive is here for you

Vive wants to support you in achieving your financial goals, and investing is a powerful way to secure your pension. Whether you choose pension or investment, at Vive we are ready to help you make the right choices for your future.