News - 21.11.2025

The Solution Lies in Equality – From VR’s Forum on Women’s Pension Matters

On average, women aged 67 and older earn 80% of what men of the same age earn. The gap is greatest among those with the highest incomes. The gender pay gap in the labour market thus follows women throughout their lives. This was among the findings presented at a forum hosted by VR on women’s pension issues, held on November 20.

Presenters at the forum included Steinunn Bragadóttir, economist at ASÍ, Hrafn Úlfarsson, specialist at the Pension Fund of Commerce, and Steinunn Rögnvaldsdóttir, gender studies expert.

Steinunn Bragadóttir pointed out that the income gap between men and women in later life varies by age and income decile. This refers to all income, not just pension income. Among those with the highest earnings, women’s income is only 72% of men’s. Men, on average, have significantly higher employment income and capital income than women, possess more private pension savings, and hold greater entitlements in pension funds, which are based on labour market participation and wages over a working lifetime. This is reflected in the status of women.

Hrafn Úlfarsson noted that the average pension amount by gender has narrowed over time but remains significant. In 2015, the difference between women’s old-age pension and men’s was 47.6% compared to 39.2% last year. Several options exist to equalise pension rights between genders, Hrafn said, pointing to the possibility of sharing pension rights between spouses or cohabitants, whether accrued or future rights. However, he stressed the importance of considering many factors before making such decisions.

Steinunn Rögnvaldsdóttir discussed pension rights and wage payments from an equality perspective, highlighting that women’s unpaid labour results in reduced pension entitlements, as unpaid work does not accrue pension rights. This includes various forms of caregiving—whether for children, parents, or other relatives—which disproportionately falls on women. Mothers also tend to remain on reduced parental leave payments for longer and are more likely to work part-time with each child. She stressed the importance of sharing unpaid care work equally between genders, stating that the solution lies in equality.

The speakers joined a panel discussion at the end of the event along with Halla Gunnarsdóttir, Leader of VR, which sparked meaningful and productive dialogue. VR encourages its members to start thinking about their pension rights earlier in their working life and emphasises the importance of women safeguarding their financial independence.

VR thanks everyone who attended the seminar. Further analysis and research on women’s pension rights is both needed and important.