Why being born female is bad for your financial wealth
Back in January I wrote about how shocked I’d been at reading the Chartered Insurance Institute’s second report as part of their Insuring Women’s Futures series as it revealed the profound adverse effects the decisions made by young girls can have without them consciously being aware of the long-term implications.
In April new government legislation saw companies with 250 or more employees forced to report their gender pay gap and we have seen a steady flow of media reports analysing which industries have the largest gap.
The latest findings from credit report experts, Credit Angel certainly reinforces those of the Chartered Insurance Institute report as they have focused on everything from their home-life to their pension pots. It shows that the gender pay gap is just the tip of the iceberg when it comes to personal finances for women.
As the Perils and Pifalls of the CII research revealed, Credit Angel have come up with a similar set of circumstances around which women find themselves at a disadvantage when compared to men:
15 Reasons Why The Personal Finance Game Is Rigged Against Women
- Divorced women have, on average, less than 33% of the pension wealth than that of the average divorced man. Their long-term income decreases by 10%, while men’s increases.
- Only 20% of senior positions in the finance industry are held by women.
- Women do an average of 26 hours of unpaid work at home per week while men only do 16. (Including but not limited to childcare and housework)
- Each year a mother is absent from the workplace, her future wages will fall by 4%.
- It takes longer for women to pay off student debt (Women 16 years, Men 14 years) due to ongoing wage disparity.
- By 65 a woman, on average, can expect to pay £132,000 for their own care while men pay £82,000. This is due to women living longer and often having higher care requirements.
- Women are four time more likely to leave their job due to being sandwich carers (looking after both children and adults)
- 1 in 5 women are carers preventing them progressing at work.
- Women have £7,500 in defined contribution scheme savings, while men have an average of £14,500.
- The average woman reaches her peak earning power at 34 (£13.19 per hour) compared to the average man who reaches his peak earning power at 50 (£15.54).
- 29% of women remove their wedding rings in interviews for fear of discrimination.
- 50% of women in STEM industries have experienced gender discrimination at work.
- 59% of employers believe job applicants should have to disclose whether they are pregnant.
- 46% of bosses believe it is okay to ask women if they have young children during the recruitment process.
- Sexist pricing means women pay more than men for comparable items, particularly in the toiletry and grooming industry. There is also a 5% VAT charge on tampons which hopefully the Government will abolish this year if they hold good to their previous promises.