Retirement | How can we promote income equality for women?

Published on November 14, 2024

By: Jade Bellemare
Director, Communication and Marketing
Group Benefits and Retirement Solutions
iA Financial Group

Equal pay, access to group retirement savings plans and communication that is better adapted to the specific needs of women are all challenges that need to be met to ensure greater equity and enable women to enjoy a more peaceful retirement.

According to Statistics Canada, women’s retirement income has plateaued at around 70% of men’s since the 1970s. This difference is partly due to the gender pay gap, which stands at 17% in Canada, well above the Organisation for Economic Co-operation and Development (OECD) average.

What’s more, women are more likely than men to be low-income earners.

Reversing the trend

Retirement plans—both public and private—have an important role to play in reducing the income gap at retirement. Employers are also part of the equation, particularly when it comes to equal pay.

Employers can also set up more equitable group retirement savings plans that offer flexible contribution options to take into account the fact that more women take time off work or put their careers on hold because of family responsibilities.

Finally, employers can also encourage women to get involved in their finances and retirement savings.

Communicating differently to better connect with women

Let me stress the importance of communicating specifically with women to improve their financial literacy. Women score lower than men when it comes to knowledge of the retirement income system (public and private retirement plans, personal savings), according to the 2024 index produced by HEC Montreal’s Retirement and Savings Institute (RSI).

Improving women’s financial knowledge would benefit their retirement situation. Therefore, targeted initiatives should be implemented to meet their specific needs.

The way we communicate with them is still too generic. Too often, communication does not focus on their specific challenges and uses language that is not very engaging. Developing a communication strategy and educational content could change all that.

The “one size fits all” concept has had its day. To interest and engage women, we need to address them in a language that speaks to them. I recommend offering a more personalized approach, and even content that is specific to women. This means tackling subjects from an angle that responds to their concerns by choosing appropriate words and dealing with subjects that are of particular concern to them.

This text is adapted from the article “Retraite des femmes : plus d’équité pour plus de sérénité” (in French only) published in Avantages in September 2024.