Women and retirement planning

It would be beneficial for men and women to plan their retirement differently. Certain factors can make planning a little more complex for women than for men. These factors often have an impact on women's ability to save for retirement. Here are a few of them.

Life expectancy

Currently, women can expect to live three years longer than men on average. This gap means that they will have to fund a longer retirement. To not run out of money when they are at an advanced age, women would do well to save more than men.

Wage gap

In Québec, in 2022, the average after-tax income of individuals was $44 400. It was lower for women than for men. Women received $40 400 compared to $48 800 for men ^{Voir la Note 1}.

Parental leave

After giving birth to a child, most women are absent from work for several months. During that period, their income is often reduced or non-existent. This interruption impacts not only their savings, but also the progression of their salary.

Caregiving

More women than men offer care to someone in their entourage who is ill or in need of assistance ^{Voir la Note 2}. They must therefore take more time off work than men or reduce their working hours. In 2023, women had 3.5 times more hours of absence for personal or family obligations than men ^{Voir la Note 3}.

Part-time work

Women are more likely than men to work on a part-time basis or to reduce their working hours due to family obligations ^{Voir la Note 4}. By working less than men, they earn less than them.

Career advancement

More women than men choose to work in environments that offer a good work-family-caregiving balance. Some will turn down promotions, take unpaid leave or retire earlier to meet their family obligations. Often, their salary suffers the consequences.

How can these inequalities be reduced?

The retirement pension under the Québec Pension Plan (QPP) can help reduce these inequalities. Up to 15% of low employment earnings for certain years can be excluded from the calculation of the pension. For example, it could be periods during which a woman needed to take time off work due to family obligations. These exclusions limit the impact of the periods of absence on her pension amount.

Better understanding your finances means better preparing for the future. Increasing your financial knowledge can give you the confidence to make better decisions. Women or men, everyone benefits from being better educated to manage their money and properly plan their retirement.

Other useful information

• Portrait des femmes aînées au Québec – Travail et retraite  (French only)