How Does the Gender Wage Gap Impact Retirement, Salary Increases, and Budgeting?

The gender pay gap means that women will make less money than their male counterparts from the beginning of their careers through retirement.  Call us to learn how women can fight for equal pay for equal work.

Women typically earn $.82 to every dollar that men earn. The difference in pay between men and women is known as the gender wage gap. The gender wage gap is a systemic gender discrimination issue in which women are offered lower starting salaries than men. As a result, they consistently earn less than men throughout their careers.

While federal laws specifically prohibit wage disparities due to gender, the gender wage gap continues to exist. Many times, employees do not discuss salaries with one another. Therefore, women are unaware that their male counterparts who started at the same time and have the same experience are making more money per hour.

However, the gender pay gap has more effect on life than your daily paycheck. It can have long-term effects that prevent you from retiring, paying for your children’s college education, and saving money for large expenses. Learn more about the long-term effects of the gender wage gap.

How Does the Gender Wage Gap Affect Your Annual Salary?

When a woman makes an average of $.18 less than a man per hour, it adds up. Over a 40-hour workweek, that equals $40.18 per week. Over the course of a year, women make an average of $2,089 a year less than their male counterparts.

As men and women receive increases in their annual salary, they receive a percentage of their salary or hourly rate more. For instance, you may receive an increase of 3% of your salary. 3% of a woman’s already reduced salary results in a smaller raise than her male counterpart.

Over the course of a career, a woman will earn much less than a man who has the same job and same experience. The wage difference is directly related to the initial gender wage gap of $.82 on the dollar.

Can Women Save Money While Earning Less Money Because of the Gender Pay Gap?

Many people live paycheck to paycheck. Furthermore, many women may be the only provider for their children. As a result, they need to be mindful of their spending habits to ensure they can pay their bills and other necessities.

Losing $2,000 a year may make it difficult to save money for the future. As you continue to get raises, you will still earn much less than your male counterpart. As a result, you will find it more difficult to save money.

How Can the Gender Pay Gap Prevent Women from Retiring?

Most retirement savings plans allow employees to save a percentage of their pay. Their employers will then match that percentage up to a maximum percentage.

When a woman earns less money, she can contribute the maximum percentage of her income. However, it would be less than that of her male counterparts earning more money for the same experience.

As a result, women may have to work until much later in their careers to achieve maximum retirement savings. They will have less income to work with to ensure they can save money for their future.

How Can the Gender Pay Gap Prevent Women from Paying for Their Children’s College Education?

Once again, as women earn less money than their male counterparts, they have less money to put away for important purchases. These purchases include paying for their child’s college education.

College is expensive. When women continually earn less money than their male counterparts, they have less money to put aside for necessary expenses. They must find alternative ways to afford extras in life. Many will work more than one job to make up the difference between their salary and that of their male counterparts.

Still, their financial situation may not allow for savings for college tuition, homeownership, or other large expenses.

How Can Women Overcome the Gender Pay Gap to Help Create a Better Future?

Many theories state that women earn less than men because they do not negotiate for higher salaries when hired. If any piece of this theory is correct, women must negotiate for a higher salary when they begin a new job. Additionally, they must negotiate for higher raises every time they are up for a raise or promotion.

However, most importantly, women must be aware of their salary in comparison to their male counterparts. If they are aware they are earning less money than their male counterparts, they must speak up to change the discrepancy.

If you learn that your paycheck is less than your equally qualified male counterpart, you have the right to file a written complaint with your employer, HR team, or union rep. You can ask your employer to fix this issue. However, if your employer does nothing to make a change to your salary, you have a right to speak with an employment lawyer.

Your employment lawyer can help you fight against the gender wage gap and fix the difference between your salary and that of your male counterparts.

How Can an Employment Lawyer Help You Fight the Gender Wage Gap?

Your employment lawyer can help you navigate the laws relating to equal pay. As a result, your lawyer can help you ensure you are properly compensated for the hours you work, regardless of your gender.

They can help you file your complaint within the proper court or organization. Your attorney can also ensure you meet the requirements for filing a gender wage gap complaint, including the time limit to file your claim and other legal mandates relating to your claim.

Finally, your employment attorney can help you negotiate a settlement with your employer before you go through a lengthy court battle. If the negotiations do not work to settle your case, your employment lawyer can advocate for your rights in court.

Take Advantage of Your Employee Rights!

Your gender should not determine your salary. Furthermore, your gender should not prevent you from earning a fair living throughout your career. If you suffer from unequal pay resulting from the gender pay gap, the experienced wage and hour lawyers at the Derek Smith Law Group in New York City, New Jersey, Philadelphia, Miami, and Los Angeles can help. Request more information at 800.807.2209.