Women and Retirement: Why the Pension Gap is 40%

Women and retirement: understanding why the 40% pension gap persists and its main causes to better prepare for financial futures.

Introduction: A Significant Pension Gap Between Women and Men

According to the latest data from DREES published in 2025, the median pension for retired women amounts to 1,050 euros per month, compared to 1,750 euros for men, representing a gap of nearly 40%. This pension gap constitutes a major issue of social justice and economic equity. Understanding the precise reasons for this differential is essential to define effective strategies aimed at reducing this imbalance.

Key Figures on the Pension Gap in 2025

Indicator	Women	Men	Gap
Median Monthly Pension	€1,050	€1,750	-40%
Employment Rate at Ages 50-64	68%	85%	-17 points
Part-Time Employment	32%	8%	+24 points
Average Contributory Career Length	31 years	36 years	-5 years

Sources: DREES 2025, INSEE, Ministry of Labour.

Main Causes of the Pension Gap

Three structural factors explain the bulk of this gap: the prevalence of part-time work among women, career interruptions related to parental leave, and the overall shorter length of careers.

Part-Time Work: A Key Factor in Low Retirement Rights

In 2024, 32% of active women hold part-time jobs compared to only 8% of men (INSEE, 2024). Part-time work, often involuntary, mechanically reduces the amount of contributions paid and thus the accumulation of pension rights. An employee working at 50% contributes half of what a full-time employee contributes, which directly impacts the final pension amount.

Parental Leave and Career Interruptions

Women take on average 2.3 years of parental leave or part-time work to care for children, compared to 0.4 years for men (DREES, 2025). This interruption or reduction in activity slows the accumulation of contributory quarters and reduces annual income, which forms the basis for pension calculations.

Shorter Careers and Lower Earnings

The average length of contributory careers is 31 years for women versus 36 years for men (CNAV, 2024). Furthermore, the average salary of women is 20% lower than that of men over the entire career (INSEE, 2023), which decreases social contributions and thus pension rights.

This disparity contributes to poverty among retired women: 18% of retired women live below the poverty line, compared to 8% of men (INSEE, 2024). It also weakens the pay-as-you-go pension system by limiting the saving and investment capacity of older women. This phenomenon exacerbates gender inequalities in the long term.

Strategies to Reduce the Pension Gap

Several levers can be activated simultaneously to reduce this gap:

1. Encourage Pay Equality and Recognition of Part-Time Work

Reducing wage gaps is a prerequisite. Moreover, the pension system could grant a bonus increase for part-time careers to compensate for the reduction in contributions linked to reduced working hours.

2. Improve Recognition of Parental Leave Periods

Measures such as validating quarters for parental leave or considering a flat-rate remuneration during these periods can increase women's pension rights.

3. Promote Career Continuity and Length

Combating job insecurity and labor market segmentation, notably by strengthening women's rights in sectors with a high share of short-term or part-time contracts, is essential to lengthen contributory careers.

4. Structural Reforms of the Pension System

Implementing enhanced solidarity mechanisms, such as redistribution through complementary benefits or differentiated revaluation of women's pensions, can help reduce the gap.

Summary Table of Action Paths

Cause	Strategy	Expected Impact
Part-Time Work	Increase pension rights for part-time work	+10 to 15% pension for part-time careers
Parental Leave	Validation of quarters and flat-rate remuneration	+2 to 3 years of recognized contributions
Short Careers	Strengthening rights in precarious jobs	Average career length extension of 1 to 2 years
Wage Gap	Pay equality policies and anti-discrimination efforts	Reduction of 5 to 10% in pension gap

Conclusion: A Crucial Issue for French Investors

The 40% pension gap between women and men directly reflects wage inequalities, differences in career nature, and interruptions related to motherhood. Recent DREES data highlight the persistence of this phenomenon despite public policies implemented. For French investors, this reality has several implications:

The retirement savings product market must adapt to the specific needs of women by offering compensatory solutions for fragmented careers.
Companies have a key role to play in reducing wage gaps and promoting professional equality, which will positively impact their female employees' pension rights.
Ongoing and future pension system reforms must incorporate a strong gender dimension to ensure the social and economic sustainability of the system.

In summary, bridging this pension gap is not only a matter of equity but also a lever for inclusive growth and economic stability. Savvy investors must consider these dynamics to anticipate labor market and pension system evolutions in France.

Main sources: DREES (2025), INSEE (2023-2024), CNAV (2024), Ministry of Labour, Bank of France.