Introduction to the Pension Disparity Between Men and Women
Adolfo Arditti, Director of Customer Experience at Afore Sura, discussed the formula for better pensions in Economía sin Monotonía. He emphasized three key factors: contributing with the highest possible salary, working for a longer period, and voluntary savings. However, women face significant challenges in accumulating sufficient cotization weeks due to their employment patterns.
Women’s Employment Challenges
Many women work in the informal sector or take extended breaks from employment for child-rearing or family care. Arditti explained that under the 1973 Law, pension calculations are based on the last five years’ salary. In contrast, the 1997 Law considers the total amount saved, making pension calculations sensitive to retirement age.
Understanding Pension Laws and Their Impact
1973 Law: Pension calculations are based on the last five years’ salary, which can disadvantage women who may have taken time off for child-rearing or family care.
1997 Law: Pension calculations consider the total amount saved, making it crucial for individuals to contribute consistently throughout their working lives.
The Importance of Continuous Contributions
Arditti highlighted that the timing of retirement affects pension calculations under both laws. Retiring at 60 or 65 will result in different pension amounts, emphasizing the need for continuous contributions.
Key Questions and Answers
- Q: Why do women face lower pensions than men? A: Women often encounter difficulties maintaining sufficient cotization weeks due to working in the informal sector or taking extended breaks for child-rearing and family care.
- Q: How do the 1973 and 1997 pension laws impact women? A: The 1973 Law bases pensions on the last five years’ salary, potentially disadvantaging women who took time off. The 1997 Law considers total savings, emphasizing the importance of consistent contributions.
- Q: What is the significance of retirement age in pension calculations? A: Retiring at 60 or 65 can result in different pension amounts, as both the 1973 and 1997 laws consider factors like salary and total savings.
