A new report warns that the upcoming pension auto-enrolment scheme in Ireland may worsen the existing gender gap in retirement incomes. The scheme, set to roll out next year, aims to increase the number of workers with occupational pensions by automatically enrolling those aged 23 to 60 who earn over €20,000 and are not currently in a private pension. While the National Women’s Council (NWC) acknowledges that the scheme is “worthy of some praise” for its efforts to expand pension coverage, they argue that it fails to address the “structural” inequalities affecting women.
The report highlights that the scheme’s strong link between pension entitlements and paid employment neglects the significant impact of unpaid care work, which disproportionately affects women. “Auto-enrolment strengthens the connection between earnings from paid employment and future pension income, which may result in exacerbating the gender pension gap,” the report claims. Women are more likely to be in low-paid, part-time jobs, contributing less towards their pensions as a result.
They also frequently face interruptions in paid employment due to unpaid care responsibilities.
Auto-enrollment and gender inequalities
NWC Director Orla O’Connor criticized the new scheme for failing to address deep-seated inequalities, despite its landmark status.
“The 35% gender pension gap severely impacts women’s lives in older age, alongside enduring structural discriminations like the marriage bar,” she said. The NWC urges the next government to expand the number of people eligible for the state pension and enhance its value, with the long-term objective of developing a universal pension system. They recommend setting the full rate of the contributory state pension at 35% of average yearly earnings and reforming pension tax reliefs that currently benefit the highest earners.
The report, titled “Still Stuck in the Gap – Pensions Auto-enrolment from a Gender and Care Lens,” was authored by Oisín Gilmore, a senior economist at the social policy think-tank TASC. It underscores the need for a pensions policy that does not penalize unpaid care work and calls for new policies on parental leave, a universal childcare scheme, and improved employee rights to seek flexibility to balance work and care responsibilities. The Department of Social Protection stated that it could not comment on specifics in advance of the report’s full publication but emphasized that the introduction of auto-enrolment would significantly address existing pension coverage gaps.
“The implementation of AE will greatly assist in meeting the commitment to increase women’s access to private and occupational pensions,” a department spokesperson said.
