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 leader 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 towards 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 responsibilities or part-time work. As a result, they accrue less pension through traditional schemes, and this difference in pension is difficult to catch up on. Nevertheless, there are several steps you can take to create more financial security for later.

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 it's quite easy too. So you just see people start playing with it and making deposits.” – Mariëlle Romeijn

Sector-dependent differences

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

Women invest less frequently – a missed opportunity

The difference between men and women who invest is significant. Less than 1 in 5 investors is a woman. This is partly due to history: until 1956, for example, married women could not take out their own insurance or withdraw money without permission. This backlog still seems to be having an effect, 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 hurdles, women actually perform 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 more often opt for sustainable investments, take fewer risks, and focus more on loss mitigation than on profit. These are smart choices for those who value stable growth and financial security. This sustainable character often makes women's investments more stable and successful in the long term. 

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

Partner's pension: what can you get out of this?

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 a share of your (ex-)partner's pension, usually divided on a 50/50 basis, or otherwise via a divorce settlement.

In the event of death, a survivor's pension may be available if your pension scheme allows it. It is often the case that when a person dies, their pension also disappears (news flash: pension funds are not necessarily keen on 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 on.

Vive's pension pot remains for you and your family, because if you unexpectedly die, the accrued money goes to your family. 

What is the situation with the pension gap?

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

Women would like this gap to be closed, but only 18% actively take the time to delve into their own pension, compared to 30% of men. To close this gap, Annette Mosman, Chairwoman of the Board of pension administrator APG, emphasises the importance of awareness: “It is important that women realise how their choices today influence their pension income for 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 consequences of part-time work and other choices for their pension.

This can amount to hundreds of euros per month. 

Build your own pension – take control!

Do you want to increase control over your pension? You can! For many women, it is a smart step to build up supplementary pension via the third pillar: building up an individual pension with a tax advantage. By saving in an annuity account, you build up capital, with a possible return because your deposit is invested. This can be a nice supplement to your pension.

Tax advantage: The tax advantage you can achieve depends on your annual allowance (jaarruimte), the amount you are allowed to accrue annually with tax benefits. This tax advantage can amount to as much as 37% to 49% of the deposit, which means that the government contributes to your pension pot. 

However, keep in mind that the accrued capital is specifically for your pension and therefore cannot simply be used for other purposes.

Investing for extra security

You can also opt for capital accumulation through investing without a tax advantage. 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 want 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 means of securing your pension. Whether you choose a pension or investing, at Vive we are ready to help you make the right choices for your future.

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