Global wealth equity study finds women attain just three-quarters of men’s wealth at retirement
WTW Global Gender Wealth Equity Report reveals significant disparities in wealth accumulation between men and women at retirement globally. Women are projected to retire with only 74% of the wealth of men on average, with the gap widening in senior roles (62% of men's wealth). U.S. women's wealth at retirement is slightly above the global average at 75%. Factors such as gender pay gaps and delayed career advancement are key contributors to this disparity. Although corporate efforts are helping to narrow this gap, more action is needed to address the multifaceted issue of gender wealth inequity.
- Increased focus on gender diversity, equity, and inclusion initiatives is aiding in closing the gender pay gap.
- Collaboration with the World Economic Forum enhances the credibility and scope of the findings.
- Women in leadership roles have significantly lower pay trajectories compared to their male counterparts.
- The gender wealth gap remains pronounced, with women expected to accumulate only 62% of men's wealth in senior positions.
Gender wealth gap in U.S. mirrors global average
ARLINGTON, Va., Nov. 03, 2022 (GLOBE NEWSWIRE) -- A new global study from WTW (NASDAQ: WTW) highlights a startling difference between the wealth accumulation of men and women at the point of retirement, around the world. The WTW Global Gender Wealth Equity Report, out today, shows that on average women are expected to reach retirement with just
Furthermore, the study highlights that the gender wealth gap at retirement increases with seniority. Globally, women in senior expert and leadership roles were found to have less than two-thirds (
Manjit Basi, senior director, Integrated & Global Solutions, WTW, said: “The results from our global analysis are startling. It shows that there is a gender wealth gap consistently across the 39 countries that we studied. The primary drivers contributing to gender-based wealth disparity include gender pay gaps and delayed career trajectories. Additionally, gaps in financial literacy and family caregiving responsibilities outside the workplace influence women’s participation in paid employment and therefore their ability to build wealth.
“It’s imperative that activities around gender diversity, equity and inclusion broaden to look at economic wealth at the end of women’s working careers. Pay is a fundamental factor that underlies the gender wealth gap, and while addressing the gender pay gap will partially close the wealth gap, it won’t eliminate it entirely.”
Globally, the U.S.’s gender wealth gap was just above the global average at
In the U.S., pay gaps and delayed career progression are the primary drivers of the wealth disparity between men and women. The pay gap is more pronounced in leadership roles, where the pay trajectories for women are significantly lower than men. For frontline operational roles, the pay trajectories are very similar between genders, resulting in a higher wealth equity index.
The study highlights that there has been an increasing focus on reversing the trend of gender discrimination through the recent environmental, social and governance awakening. In addition, corporate efforts to further diversity, equity and inclusion have helped narrow the gender pay gap and underrepresentation of women in board and leadership roles. Yet, more remains to be done.
“Gender inequity in wealth accumulation is under-researched and overlooked. The reality is that the wealth inequity issue and its causes and effects are multidimensional and should be studied and addressed as such,” said Basi. “By focusing on accumulated wealth at retirement, the disparity can be quantified, and actions can be taken through broader society, government and organizations to equalize wealth outcomes.
“While no single solution alone will solve the gender wealth gap, effective leaders need to employ a range of approaches to narrow it.”
The WTW Global Gender Wealth Equity Report follows a collaboration between the World Economic Forum and WTW earlier this year, which released initial insights into the wealth gap in the Global Gender Gap Report 2022.
About the survey
The WTW Wealth Equity Index, developed in collaboration with the World Economic Forum, takes a holistic view across women’s working lifetimes and attempts to quantify the extent of the gender wealth gap for a selection of countries globally. It analyzed the quantitative and qualitative aspects of gender wealth equity, with deep dives into 39 individual countries.
Previous gender studies have focused on assessing gender disparities from the single lens of pay, career, pensions and longevity or workforce representation. The reality is that the issue of gender inequity and its causes and effects are multidimensional. By focusing on accumulated wealth, we consider the effects of many intermingled inequities, including pay, career progression, financial literacy and events that occur during a working lifetime. And we can measure through one metric — accumulated wealth at retirement.
About WTW
At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organizations sharpen their strategy, enhance organizational resilience, motivate their workforce and maximize performance.
Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success—and provide perspective that moves you. Learn more at wtwco.com.
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