Fewer pensions for Dutch women: How to address this?

In the Netherlands, there is a striking difference in pension accrual between men and women. Research even shows that the Netherlands is the leader in this inequality within Europe. This difference has major consequences, especially since many women are unaware 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 because of care responsibilities or part-time work. As a result, they accrue less pension through traditional plans, and that pension gap is difficult to make up. Still, there are several steps you can take to create more financial security for later.

At Vive, we try to make it easy. So any individual can start building their wealth. No matter how much money or knowledge they have. 

"You can actually control everything yourself and it's pretty easy. So you just see people start playing with it and putting those in." - Mariëlle Romeijn

Sector-dependent differences

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

Women invest less often - a missed opportunity

The difference between men and women investors is stark. Less than 1 in 5 investors are women. This is partly due to history: until 1956, for example, married women could not take out their own insurance policies or withdraw money without permission. That disadvantage still seems to continue, because today women often know exactly how much money is in their accounts, but long-term investments such as retirement often remain underexposed.

Despite these barriers, women actually appear to do well in the investment market. On average, female investors' returns are 0.4% higher than men's, which can make a big difference in the long run. Women are more likely to choose sustainable investments, take less risk and focus more on loss mitigation than 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 over the long term. 

It is important that men and women have equal opportunities and options when it comes to investing. In fact, investing can be a powerful tool for building long-term financial security, especially if, like many women, you accrue fewer pensions through traditional plans.

Partner's pension: what can you gain from this?

A lower pension does not have to be an immediate 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 (former) partner's pension, usually divided on a 50/50 basis, or else through a divorce settlement.

Upon death, a survivor's pension may be available if your pension plan allows it. In fact, often when a person dies, their pension also disappears (news flash, pension funds don't necessarily benefit from you living longer). It's still important to check whether your existing pension plan is sufficient for your future plans. That way you can avoid surprises later.

Vive's pension pot you keep for yourself and your family, because if you die unexpectedly, the accumulated money goes 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 on average 40% less pension than men(the study in question). That difference is due to a combination of factors, such as fewer paid work hours and a pay gap, which causes women to accrue less salary and therefore less pension.

Women would like this gap to be closed, but only 18% actively take the time to look into their own pensions, compared to 30% of men. To close this gap, Annette Mosman, board chair of pension administrator APG, stresses the importance of awareness: "It is important that women realize how their choices today affect their retirement income later. Working less now means less salary and a lower pension later."

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

In fact, it can add up to hundreds of euros per month. 

Building your own retirement - take matters into your own hands!

Want to take control of your retirement? You can! For many women, it's a smart move to build supplemental retirement through the third pillar: building up individual pensions with tax advantages. By saving in an annuity account, you build up assets, with potential returns because your deposits are invested. This can be a nice addition to your pension.

Tax benefit: The tax benefit you can earn depends on your annual margin, the amount you are allowed to accrue annually with a tax break. This tax benefit can be as much as 37% to 49% of the deposit, meaning the government is contributing to your retirement pot. 

Just keep in mind that the accumulated assets are specifically for your retirement 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. These assets are freely withdrawable and can therefore be used for other purposes, such as a long trip or a house. At Vive, we would like to educate women about the possibilities and benefits of investing so that more women can use it for their financial security.

Vive is there for you

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