Gender parity and intergenerational justice: analyses and perspectives

On 3 March 2025, UBS published its latest Gender Lens Report, which analyzes investments for, by and in women, as well as investment opportunities and challenges for women in the four key areas of education, health, financial inclusion and entrepreneurship. The key findings are as follows: 

• Significant progress in education: Over the past two decades, socio-economic indicators demonstrate that women worldwide have made significant progress. The enrollment rate in tertiary education has risen to 46% for women and 40% for men, compared to only 19% for both genders in 2000.
• Gender equality holds potential for global GDP: Gender equality is not just about the desire for fairness but also offers great potential for economic growth. According to estimates by the OECD and the World Bank, gender equality in working life and management positions could increase global GDP (gross domestic product) by USD 7 trillion. If full gender parity were achieved at all levels, the profit potential would even increase to between USD 22 and 28 trillion.
• Women manage the majority of discretionary spending: Women manage USD 32 trillion of global spending today and are expected to control 75% of discretionary household spending within the next five years, according to data from Nielsen. Discretionary spending is spending that is not necessary for basic needs or daily living expenses, for example spending on leisure activities or luxury items.
• The size of the femtech industry should not be underestimated: Much potential is seen in the femtech industry, which offers health applications, financial services and consumer goods tailored to women. According to estimates, it currently generates sales of USD 28 billion.
• Companies that encourage women perform better: Companies in the top quartile of gender diversity are 18% more likely to outperform their peers in the bottom quartile, according to McKinsey. Investing in female entrepreneurs and portfolio managers supports gender lens investing, promotes women’s economic empowerment and financial inclusion, with sustainable investment funds representing over USD 3 trillion in assets.

Read our Gender Lens Report to discover the details and other interesting findings.

A generational balance sheet shows how the state distributes its income and expenditure over several generations. It helps to understand whether each generation is being treated fairly and where adjustments are needed to create balance.

A system can be considered sustainable and fair if it works in the long term without changing the rules. The first pillar of the Swiss pension system (OASI), for example, is not sustainable because pensions are not covered by income in the long term.

The OASI funding gap shows how the income and expenditure of pillar 1 relate to Swiss GDP. Only the hidden debts are taken into account. The sustainability gap of the OASI also includes the open debts and assets of the OASI.

Summary of the results:

The OASI significantly improved its benefits in 2024. Over the next few years, we need to focus on how we can finance the pension promises fairly for all generations. There are various ways to do this: raising the retirement age, collecting more taxes and contributions or adjusting the structure of the OASI. But none of these solutions alone will suffice. The OASI currently has a funding gap of around CHF 1,315 billion. To distribute this burden fairly across generations and different social groups, we need a comprehensive and long-term reform based on several solutions and compromises.

Options for closing the OASI financing gap:

• Higher reference age: A higher retirement age would be effective as it would lead to more income and less expenditure.
• Higher taxes and contributions: To close the funding gap completely, contributions and taxes could be increased even more.
• Structural adjustments: Pensioners participate in economic growth with regular pension adjustments via the mixed index, which is half price index and half wage index. If OASI pensions were to follow price changes more closely in future and wage trends less closely, this would be positive for the OASI’s financial situation.

The European Court of Human Rights has ruled that Switzerland must treat women and men equally when it comes to survivors’ pensions. Until now, women have received higher pensions than men due to historical social norms. In future, more attention will be paid to ensuring that surviving children can maintain their standard of living. These changes will have a slightly positive effect on the financing of the OASI.

In order to make the pension system sustainable, various measures must be combined. The extent to which each measure is implemented is a political decision. It is important that the benefits of the current system are preserved for future generations and that the additional burdens are distributed fairly.

Would you like to find out more about this topic? Then read our generational balance sheet (in German).