Here’s a harsh reality: the new pension system is set to widen the financial gap for young working women, and it’s all because of the unpaid work they shoulder. But here’s where it gets controversial—while the system aims to reward younger employees with higher pension accruals for every euro contributed, it fails to account for the fact that three-quarters of women in their 20s and 30s work part-time, often to care for children or manage other unpaid responsibilities. This oversight could leave many women at a significant disadvantage later in life.
Starting January 1, several pension funds will adopt this new system, which favors those who contribute more during their early working years. While this might benefit young men, it disproportionately harms young women, who are more likely to juggle part-time work and caregiving duties. And this is the part most people miss—a 2021 study by Netspar revealed that women accrue an average of 40 to 45 percent less pension than men, largely due to the persistent wage gap and their higher likelihood of working in lower-paying sectors.
Last year, women in the Netherlands earned 10.5 percent less per hour than men, a gap partly driven by part-time work and gendered sector choices. Karin Jakobsen, founder of BrightPensioen, highlights the core issue: ‘Three-quarters of women work part-time, primarily because they take on more caregiving responsibilities than men. This unpaid work directly undermines their pension accrual.’ While society normalizes shared caregiving, the financial burden still falls disproportionately on women, perpetuating inequality.
Here’s a bold idea—what if tax benefits weren’t solely tied to salaries? Jakobsen argues that this change could level the playing field. ‘If you earn less, you benefit less—it’s unfair,’ she says. ‘We live in a world where only paid work is rewarded, but unpaid work is just as vital. Recognizing and rewarding it could lead to greater financial equality.’ She also emphasizes the role of partners in achieving financial balance, urging couples to have open discussions about shared responsibilities to avoid pension deficits later in life.
This raises a thought-provoking question: Is it fair to design a pension system that ignores the value of unpaid work, knowing it disproportionately affects women? Let’s discuss—do you think unpaid caregiving should be factored into pension calculations, or is the current system justifiable? Share your thoughts in the comments!
