A detailed new report from Ontario’s Pay Equity Office, Understanding the Gender Pension Gap in Canada, reveals that women receive $0.83 to every $1.00 a man receives in retirement income. This 17 per cent gap was identified and calculated using three sources: Old Age Security and Guaranteed Income Supplement, Canadian Pension Plan/Quebec Pension Plan and private pensions.

“Despite Canada’s robust retirement income system, women are facing an uphill battle in securing financial stability during their golden years. And the situation hasn’t improved much since 1976,” the office states in an announcement about the paper’s release. “Although Canada’s retirement income system is recognized as one of the strongest in the world, not all Canadians are benefitting equally. While retirement incomes have increased substantially for all Canadians, men have consistently fared better.” In 1976, they say the gender pension gap was 15 per cent. 

Systemic bias 

While some reasons are obvious – women are more likely than men to earn lower wages and spend fewer hours in the paid labour market (the report provides statistics for both) – systemic issues are also identified in the paper, which provides a detailed history of policy development, the systemic gender biases present within the different income programs, the mechanics of private pensions and suggested reforms.

“Foundational choices made in the 1960s which continue to sustain the gender pension gap: to make public pensions primarily dependent on labour market earnings; and to keep public pensions small so private pensions, also dependent on labour market earnings, would have room to grow,” the report’s researchers write.

Private pensions 

Notably, the paper says private pensions now contribute the largest share of overall pension income but at the same time make the largest contributions to the overall pension gap. They add that the COVID-19 pandemic also had a disproportionate impact on women that may well persist absent policy intervention.

“The report calls for comprehensive, gender-based analysis and on-going monitoring of Canada’s retirement income system to ensure that it lives up to its constitutional obligation to provide equal protection and equal benefit of the law to both women and men,” the report states.