Women Face Abject Poverty in Old Age Without Adequate Pension Savings

Strategic Insights -

Women in Canada are increasingly facing poverty in their old age due to inadequate pension savings, according to experts. The current pension system and benefits are not providing enough support for women, who have historically had limited opportunities to earn retirement benefits. The situation is likely to worsen as more women enter the workforce and earn higher wages, but still rely on a pension system that is not designed to support them.

Key Takeaways:

  • 45% of women, or approximately 850,000, who collected old-age security last year also received the guaranteed income supplement, paid by the government to retired people with little or no outside income.
  • The average Canada Pension Plan payments in 1994 for retired women are $272.14, while the maximum monthly benefit is $694.44 for eligible people aged 65 and over.
  • 20% of women filing income-tax returns in 1991 contributed to an RRSP, indicating that many women are not saving enough for their retirement.
  • 43% of women holding outside jobs belong to a private company pension plan, which is a lower percentage than men at 52%.
  • Women who hold outside jobs and belong to a private company pension plan still receive a median benefit that is lower than men, indicating a persistent wage gap.

Statistics:

  • $387.74: the current monthly old-age security cheque.
  • $460.79: the current maximum monthly guaranteed income supplement benefit.
  • 55%: the percentage of women who collected old-age security in 1981 also received the guaranteed income supplement.
  • 20%: the percentage of women who filed income-tax returns in 1991 contributed to an RRSP.
  • 43%: the percentage of women holding outside jobs belong to a private company pension plan.
  • $272.14: the average Canada Pension Plan payments in 1994 for retired women.
  • $469.23: the average Canada Pension Plan payments in 1994 for retired men.
  • $694.44: the maximum monthly Canada Pension Plan benefit for eligible people aged 65 and over.

Sources:

  • Towers Perrin, a benefit consulting firm.
  • Statistics Canada report on women in the labour force.
  • Canadian Press.