Gender inequality, old age, and life insurance

Now we have another compelling reason why every woman should have an accumulative insurance policy. Or even more than one...

As they say, buy now - thank yourself later ;) Let's say, after 65 years of age, which is the period when the quality of life for women, regardless of the country of residence, significantly differs for the worse compared to that of men of the same age.

These are the conclusions published on the website of the renowned medical journal The Lancet in early August.

The results of the study were as follows:

- In all countries without exception, men have an advantage in all aspects of aging, as well as in the overall index. Therefore, no matter which country you live in, it is easier to be an elderly man than an elderly woman.

- The most gender-equal countries were found to be the Nordic countries, the Netherlands, and Japan. The lowest indices were in Eastern and Southern European countries (Hungary, Poland, Slovenia, Estonia). It is easy to imagine that if Ukraine had participated in this study, its indicators would be similar to those of our neighbors.

- With age, women have fewer opportunities for financial independence. For the same job vacancy, out of two elderly candidates with identical resumes, a man is more likely to be hired. After retirement, the size of the pension for women is also smaller. In the OECD countries that participated in the study, men earned an average of $3,450 more than women.

- According to data from 90 countries, women spend an average of three times more hours per day on unpaid care work for children or parents than men. This, in turn, limits their time for paid work.

- Since women live longer (girls born in 2019 are expected to live 4.5 years longer on average than their male peers), they are more susceptible to chronic diseases in old age and generally bear higher personal medical expenses than men.

- Additionally, because women tend to outlive their husbands, they spend more years alone and in social isolation, which affects their financial situation, psychological well-being, and sense of security.

Why is gender equality so important?

According to researchers, a society that fosters positive aging is one where elderly people have the opportunity to work productively, maintain physical and mental health, enjoy financial and personal security, distribute their resources fairly, and have positive and supportive intergenerational relationships. Each year, the proportion of elderly people, and thus their influence on society, increases. By 2050, the number of people aged 65 and older is projected to reach 1.5 billion worldwide.

At the societal level, gender inequality reduces a country's ability to effectively combat poverty, ensure social welfare, and make cities safe and inclusive for all segments of the population.

In contrast, eliminating gender disparities benefits society by developing social capital, ensuring the security of elderly people, and increasing the number of women with long-term savings.

Women who maintain financial independence and good health for longer have a positive impact on the next generation. Long-term care for frail elderly relatives demands enormous time and financial resources. And who, as we have already established, takes on this responsibility? Once again - young women.

How to break this vicious cycle?

В ідеалі, зміни у ставленні суспільства до гендерної нерівності мають початися на всіх рівнях - від місцевого та національного до міжнародного.

Однак сучасним молодим жінкам не варто чекати на зміни “згори” і втрачати дорогоцінний час.
Беріть справу до своїх рук та вже зараз починайте створювати гарантовану гідну та безпечну старість!

Fortunately, there are more than enough tools to break this vicious cycle:

1. It could be the aforementioned life insurance policy  mentioned at the beginning of the article, which will not only help gradually accumulate capital but also provide financial protection in case of illness.

2. It could be a private pension fund, as we recently discussed, explaining why relying on the state for pensions is no longer advisable.

3. It could be a traditional health insurance plan or a specialized program like our "Doctor TAS", which provides protection in case of serious critical illnesses requiring substantial treatment costs.

4. It could involve creating a financial safety net through simple and effective investment programs.  Even better - consider all the listed options simultaneously!

5. And finally, most importantly, it's about enhancing financial literacy among women and increasing their knowledge of basic financial instruments. For this purpose, subscribe to updates on our blog to learn the most interesting and relevant information about insurance, finances, investments, and health.