Gender pay inequity translates into a persistent wealth gap
– The gender pay gap grows over time in retirement savings. There is a multiplier effect.
– Gendered attitudes to money may be instilled at an early age.
Here’s a note from Tom Gosling:
While the gender pay gap receives a lot of publicity, much less well appreciated is how this translates into a persistent wealth gap. Data from the Office for National Statistics shows the median pension pot for women aged 16 to 24 is only 10% less than that of men of the same age. But this shortfall balloons to around 50% above the age of 35.
Gendered attitudes to money may be instilled at an early age. HSBC UK found in a survey that parents were 20% more likely to give their sons a talk about money than their daughters. As I discuss in The Money Factor, the second of my Financial Freedom factors, the lessons we learn in childhood affect our emotional and psychological relationship with money throughout our lives.