Gaps in financial literacy and a lack of preparedness when negotiating for salary and benefits during the hiring process can have a costly impact on female executives.
The well-documented gender wage gap in the United States puts working women behind the curve on hitting their goals for salary, savings and benefits. Women today earn an average of 84% as much as men—amounting to a difference of $10,000 per year—and it takes women 15 months to earn what men are able to make in 12 months, according to the U.S. Department of Labor. And it’s worse for women of color.
The gender pay gap doesn’t just impact women during their careers, however; it also persists into and impacts retirement savings. U.S. News reports that the median 401(k) account for women is 65% lower than the balance for men, according to recent research from T. Rowe Price. CNBC reports that women have about 30% less saved by the time they retire.
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