Forty per cent of Danish women work part time after the birth of their first child, which has “major consequences” for their pension, Insurance and Pension Denmark (I&P Denmark) CEO, Kent Damsgaard, has said.

I&P Denmark said the difference between the sexes when it comes to part-time work is “striking” and new research showed the difference is primarily due to the fact that women, to a greater extent than men, work part time after the birth of their first child.

Before the birth of a first child, approximately 20 per cent of both men and women are employed in a part-time job – but for women this rises to 40 per cent after the birth of the child, while it remains the same for men.

“There is a marked and eye-catching difference between the sexes after the birth of the first child. And of course, both the individual Dane and the individual family must coordinate themselves as they wish. But it has major consequences for many women's lifetime income and pension savings,” Damsgaard said.

Furthermore, he noted that many women who drop working hours after having their firstborn are still working part time 10 years later.

“It is often mentioned in the debate that the longer maternity leave means that women will have lower pension savings. But fortunately, as a Danish wage earner, you typically also receive a pension during maternity leave. On the other hand, it clearly has major consequences for specifically women's pension savings if they work part time for a large part of their working life,” Damsgaard said.

“The unequal distribution of part-time jobs between the sexes also creates an unequal distribution of pension savings. That in itself is not a problem if it is an active and informed choice that you make as a family. But it is important to be aware of the pension backlog that follows if you work part time for a number of years.”

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