Empowering women throught financial independence

At re:publica 2023 in Berlin, ERGO presents its own session for the first time: Nakeema Stefflbauer, ERGO Technology & Services Management, and Daria Suvorova, host of the WAA Podcast, discuss how women can succeed in becoming financially independent. But why is financial independence for women still an issue in the year 2023? 

Poverty in post-retirement years continues to be a serious problem in Germany in 2023, and women are particularly affected by this threat. According to the Gender Pension Gap Report of the Federal Ministry for Family Affairs, Senior Citizens, Women and Youth, women receive on average almost 60 percent less pension than men – in retirement they often lack several hundred euros. There are various factors that contribute to this.

Pay gap and disadvantages in careers

On average, women in Germany still earn less than men. According to the Federal Statistical Office, the gender pay gap was 18 percent in 2023. This means that women in Germany earn on average 18 per cent less per hour than men.

“Women often work in industries or professions with lower pay,” explains Thorsten Dasbach, pension expert at ERGO Vorsorge Lebensversicherung AG. As a result, women earn less over the course of their working lives and therefore pay less into the pension fund. A lower pension inevitably leads to a higher risk of being poor in post-retirement years.

Qualifying women for well-paid jobs is therefore the key for women's financial independence – this is what Dr. Nakeema Stefflbauer (ET&SM), for example, advocates for with her initiative FrauenLoop e.V.

Lack of financial provision

Another reason why women in Germany are afraid of poverty in post-retirement years is a lack of financial education and provision. According to the ERGO Risk Report, 37 percent of women would like to save more for their old age, but cannot afford this (men: 26 percent). 56 percent of women expect to have to limit themselves in retirement (men: 44 percent).

On average, women live five years longer than men. Due to the higher life expectancy, it is particularly important that women pay attention to the “longevity” of their old-age provision. An important component is therefore a pension insurance that guarantees a lifelong payout. It should be possible to increase, reduce or even suspend contributions at any time, depending on current financial possibilities. 

The stock market also offers attractive opportunities, especially in times of inflation and low interest rates. According to the ERGO Risk Report, however, only 25 percent of women currently invest in shares, bonds or funds – compared to 43 percent of men. I would like to encourage women to make more use of the opportunities offered by the stock markets,” says Anke Schaks, Managing Director of MEAG and Head of Investment Products at ERGO Group AG.

Nakeema Stefflbauer, ERGO Technology & Services Management, and Daria Suvorova, WAA Podcast, will talk about financial independence for women live at re:publica in Berlin on 6 June 2023 at 11.45 am: