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Older Women Lose out in Pension Provision

New research looks at older women workers’ access to pensions

Fewer than one in three female pensioners in Ireland receive the maximum contributory pension and two-thirds rely on the non-contributory pension, leaving many women disadvantaged in later life, says a new report today. The report Older Women Workers’ Access to Pensions: Vulnerabilities, Perspectives and Strategies was written by Dr Nata Duvvury, Dr Áine Ní Léime and Aoife Callan of NUI Galway, and Dr Linda Price and Mark Simpson of Queens University Belfast, with funding from the Centre for Ageing Research and Development in Ireland (CARDI).

The research highlights the issue of gender inequality in pension provision in Ireland, north and south. It underlines the vulnerability of older women and examines the factors that contribute to lower pension incomes among women, including level of labour force participation and time spent caring for dependants The report also looks at strategies used by older women and finds many depend on partners’ or husbands’ incomes for a secure future, even though they may well outlive them as women tend to have longer life expectancies.

Launching the report, Inez McCormack, who was the first female president of the Irish Congress of Trade Unions, said: “This report comes at a crucial time in light of the changes recently announced in the Republic of Ireland  and Northern Ireland. It makes the issue of women and pensions visible – a crucial step towards the state living up to its obligation to protect the most vulnerable with regard to social security, which is a human right.”

Key findings:

• Older women workers experience limited access to pensions because of low pay, poor conditions of work and their primary role in caring.
• Women account for only 27% of those receiving the maximum contributory pension.
• Women are likely to be involved in non-pensionable employment and/or in seasonal, part-time and short-term contracts, making it difficult for them to contribute regularly to pensions.
• Reliance on partners’ income is common, but is a risky strategy in the event of separation, divorce, widowhood, illness or redundancy.
• The economic crisis, with the imposition of the government levies and charges, has further reduced women’s ability to pay into pensions.
• Typically, women were not aware of the importance of personal pension provision until quite late in life or in situations of change such as husband’s job loss or family disruption.
• For some women who could afford to contribute to private pensions, the failure of the banking system resulted in significant losses to the value of their pension funds.

Dr Nata Duvvury, co-Director of the Global Women’s Studies Programme at NUI Galway, one of the lead investigators of the report commented: “Women are often the holders of low pay and part-time jobs which will dramatically affect their ability to build pensions. With the economic crisis, this particular group in society is being put under even more financial pressure and the long-term result looks set to be financial insecurity in older age.”

Roger O’Sullivan, Director of CARDI, said: “Gender inequality in pension incomes is an important issue affecting many tens of thousands of older people in Ireland, north and south – and the number of women aged 65+ will rise by more than half a million in the next 30 years. This research underlines the gender gaps in the pension systems in the Republic of Ireland and Northern Ireland and makes an important contribution to understanding how such gaps might be closed by policy makers to ensure all older people can enjoy a secure and healthy old age.”

Dr Áine Ní Léime, co-principal investigator at the Irish Centre for Social Gerontology at NUI Galway, commented: “While pension policy in Ireland, north and south, has begun to address some of the obstacles to women’s access to pensions, there is a clear need for a coherent approach across the policy areas of employment, taxation and social welfare, as well as pensions to ensure that women have an adequate income in later life.”

Dr Linda Price, Lecturer in Spatial Planning, who led the research at Queen’s University, Belfast commented: “The life course approach taken in the research has led to an appreciation of the continuing impact of gender relations, caring responsibilities and fragmented and often low-paid employment on women’s ability to retire in our society in an era when popular conceptions are that gender quality has been achieved.”

The full report is available here, other relevant data is available from CARDI.

For further information please contact Dr Nata Duvvury, Global Women’s Studies, NUI Galway

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Third Sector Partnerships for Service Delivery: Housing procurement and housing support services in Northern Ireland

This new research project builds on earlier collaboration between David Mullins (Third Sector Research Centre Service Delivery and Housing Lead with Dr Nick Acheson at University of Ulster (TSRC’s Northern Ireland partner) and Dr Jenny Muir at Queens University Belfast. A case study for the TSRC Third Sector Partnerships for Service Delivery project on housing partnerships in Northern Ireland was undertaken in Summer 2011. The case study focused on the two largest publicly funded programmes delivered by third sector organisations in Northern Ireland (Supporting People and the procurement of new social housing) and attracted the interest of the Northern Ireland Housing Executive who have now funded a fuller follow up study by David, Nick and Jenny which will be completed in 2012.

The project is extremely timely in exploring the impact of policy changes under devolved government on the shape of the third sector in housing and the changing nature and form of resulting partnerships. As yet there has been little research into the impact of either Supporting People or procurement changes in Northern Ireland except the baseline study by this project team. The research will provide analysis and recommendations specific to the region, to inform policy and practice, whilst also both making use of and contributing to the UK literature. The project provides the opportunity to deepen our understanding of partnership impact by exploring the perspectives of large and small associations within procurement groups and different types of support and housing providers within Supporting People partnerships. This will provide a fuller understanding of the policy options and consequences of the NI Government’s role in relation to third sector housing partnerships.

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