In 2021, an Organization for Economic Cooperation and Development study “Towards Improved Retirement Saving Outcomes for Women” (OECD) estimated a 33.7% pension gap for women in the US – that is women have 33.7% less pension income than men.
The Center for American Progress (CAP) 3/30/22 article “The Economic, Educational and Health-Related Costs of Being a Woman” calculated how the gender wage gap could affect women’s retirement savings. Women earn an estimated 83 cents for every dollar earned by men, adding up to $10,435 in median wages a year. By the end of her career, a full-time working woman loses $417,400 in wages. Assuming a 6% annual rate of return, investing 20% of those earnings could yield an additional $323,000 in retirement savings. Investing the total sum could boost retirement savings by $1.6 million.
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