Most people understand that average lifetime incomes for women are lower than those for men. However, some still argue that this is because of women’s choices to accept lower paying jobs. The issue isn’t really this simple, and the Bureau of Labor Statistics keeps statistics that demonstrate this gap in pay exists in almost all occupations. It even exists in corporate boardrooms. Average pay for male chief executives is $2,251 a week; but the average weekly pay for women in the same position is only $1,836. Consider three facts about the gender pay gap in order to decide if it is real or a myth.
The Gender Pay Gap isn’t Just About Pay
The gap in compensation between men and women doesn’t just stop at paychecks. Women also tend to get weaker benefits. For example, women aren’t as likely to get offered a group retirement plan by their employers, according to the U.S. Department of Labor. As a consequence, women tend to accumulate smaller amounts of retirement savings. Female workers are also less likely to get offered group medical plans or have jobs that grant them paid time off.
Women Aren’t Held Back by a Lack of Education
According to the official blog of the White House, women have earned the majority of college degrees since the 1990s. Also, women are more likely to work at full time careers and gain experience in their careers than they used to be, but the gap in pay between men and women has not evaporated.
According to the White House blog:
Today, more of the pay gap is unexplained, leaving a greater role for factors beyond differences in education and experience.
In Fact, the Difference Between Men’s and Women’s Salaries Worsens With Age
Since it would be reasonable to assume that women would gain more experience as they age, it might also be fair to conclude that the gap between men’s and women’s salaries and compensation would close as they get older. The typical disparity in pay that gets quoted is is that women earn an average of .79 for every dollar that a man makes. However, the reality is that the differences get larger as women age, according to analysis of U.S. Census information by the American Association of University Women. Women who are mothers or members of minority groups fair even worse.
The Gender Pay Gap Makes Retirement Planning for Women Even More Critical
For both men and women, enjoying a comfortable retirement income requires planning and the right tools more than it may require a high income. Because women may earn less, they may need to plan even more. What Paradigm Life has found is that many people neglect making these plans until they are very close to retirement, and that can be a source of stress and even panic. It’s time to make the best use of the savings you have accumulated in order to maximize your wealth and minimize your tax burden. Learn more about how to plan for a successful retirement with Paradigm Life.