Rise of inflation and the gender pension gap: what role for monetary policy?

Macroeconomic policy, including fiscal and monetary policy, is usually thought of as gender neutral. But economic policy measures affect women and men differently due to their different positions in society, especially in economic crises. The recent surge in inflation - as observed since July 2021 - represents a real challenge for monetary policy and might have a relevant impact on pension schemes, especially if it proves not to be a transitory phenomenon. In the euro area, member states differ considerably both in the degree to which they manage to guarantee an adequate standard of living for the elderly, and also with regard to the gender gap. Huge differences in the aggregate replacement rate (the ratio of average pension to average salary) can be seen among member states, with a gap to the detriment of women especially in the southern countries (Greece, Italy, Malta and Spain). The impact of inflation in decreasing the real value of pension entitlements is deemed to reduce the (already low) purchasing power of women pensioners on the one hand, and it might incentivize the use of private pension schemes (as a safety net), with relevant gender differences in terms of accessibility and sustainability, on the other. The chapter deals with these issues, trying to shed light on existing gender gaps in the EU and coping with monetary policy challenges in the near future.