As we celebrate Women’s History Month, we recognize the countless women who have dedicated their careers to serving the public. From educators and first responders to healthcare professionals and government workers, women in the public sector have played a vital role in shaping our communities. Yet, their contributions have not always been met with equal financial security—until pensions helped change that.
Women in the Public Sector: A Legacy of Leadership
Women have long been at the forefront of public service, often stepping into roles that require immense dedication, patience, and resilience. Teachers mold the future by educating the next generation. Nurses and public health professionals provide essential care that keeps our communities healthy. Social workers, librarians, Emergency services, and countless other public employees ensure vital services run smoothly.
Despite their dedication, women in the workforce—both past and present—have faced systemic challenges, including the gender pay gap and career interruptions due to caregiving responsibilities. Many women generally take on caregiving responsibilities—often taking time off to care for children or elderly family members, which can impact their lifetime earnings and, subsequently, their retirement savings.
How Pensions Provide a Path to Equity
Public pensions are a crucial source of financial security and income booster in retirement for women in the workforce, particularly for those in public service roles, for two reasons:
1. Closes the Gap
Research from the National Institute on Retirement Security (NIRS) and the Pew Research Center underscores how the gender pay gap continues to affect women’s financial security well beyond their working years. While progress has been made, women still earn less than men on average, directly impacting their ability to save for retirement. In 2024, women earned 85 cents for every dollar earned by men, a modest improvement from 81 cents in 2003. However, for full-time, year-round workers, the U.S. Census Bureau reports that women still earn just 83% of their male counterparts’ wages. Yet, this progress has not eliminated the long-term financial disadvantages that women face.
Despite increasing representation in higher-paying professions, women remain concentrated in lower-wage jobs and frequently experience career interruptions for caregiving, whether for children or aging family members. These factors contribute to lower lifetime earnings and, ultimately, reduced savings for retirement. According to NIRS, women receive only 80% of the retirement income that men do, highlighting how wage inequality persists long after their careers end.
Public pensions are critical in addressing these disparities, providing women with a reliable retirement income based on years of service rather than personal savings alone. Unlike 401(k) plans, which depend heavily on individual contributions and market fluctuations, pensions ensure a secure and predictable income throughout retirement. For countless women in public service, pensions are not just a benefit—they are a vital tool for achieving financial stability after a lifetime of serving their communities.
2. Provides Stability After a Lifetime of Service
Because women statistically live longer than men, they face a heightened risk of outliving their retirement savings. According to the Centers for Disease Control and Prevention (CDC), the average life expectancy for women in the U.S. is approximately five years longer than for men. While this longevity is a testament to advancements in healthcare and quality of life, it also means that women must stretch their retirement savings over a more extended period, making financial security in later years even more crucial.
This is where public pensions play a critical role. Unlike defined contribution plans—such as 401(k)s—which depend on individual contributions and market performance, defined benefit pensions provide a guaranteed, stable income for life. This ensures that retired public employees do not have to rely solely on Social Security or personal savings, both of which can be unpredictable or insufficient.
Social Security, while a crucial component of retirement income, was never designed to be the sole source of financial support. In 2024, the average monthly Social Security benefit for retired workers is around $1,862, which is just over $22,300 per year—far from enough to cover the full cost of living for most retirees. Women are particularly vulnerable because they often receive lower Social Security benefits than men, a direct result of earning less over their lifetimes and taking time out of the workforce for caregiving.
Meanwhile, 401(k) and other defined contribution plans carry significant risks, including market volatility, high fees, and the need for careful financial management to ensure funds last through retirement. Many retirees—particularly women, who may have saved less due to lower lifetime earnings—face the real possibility of running out of money or being forced to cut back on essential expenses.
Pensions mitigate these risks by offering a predictable income stream that does not fluctuate with market changes. A woman who retires with a defined benefit pension can count on receiving consistent monthly payments for the rest of her life, providing stability and peace of mind. This long-term financial security is especially important for women, given their increased likelihood of living alone in old age and needing more extensive healthcare or long-term care services.
In an era where financial uncertainty is a growing concern, public pensions remain one of the most effective tools for ensuring women in the public sector can retire with dignity, stability, and confidence in their financial future.
Continuing the Fight for Retirement Security
While pensions have been a cornerstone of financial equity for women in the public sector, threats to these retirement benefits persist. Attempts to replace pensions with riskier retirement options could disproportionately harm women who rely on the stability they provide.
This Women’s History Month, we celebrate the women who have dedicated their lives to public service and acknowledge the importance of protecting the retirement security they have earned. Their contributions have strengthened our communities, and they deserve a future that reflects their years of hard work and dedication. By recognizing their contributions and protecting their hard-earned pensions, we ensure that their legacy continues for generations to come.
To all the women in the public sector: Thank you for your service, sacrifices, and unwavering commitment to our communities.