American women accumulate at least $1 million less than men over a typical 40-year work career, according to research conducted by the Investors Observer research team.
Key findings of the study show that the average male worker in the United States accumulates $2.73 million in portfolio wealth, assuming average retirement contributions are invested in an S&P 400 index fund. By comparison, an average female worker investing her savings under the same conditions accumulates $1.75 million in portfolio wealth, resulting in a $1 million gap. This compounding effect means that even small annual differences in contributions lead to substantially different wealth outcomes by retirement age for working men and women. While the wage gap has narrowed, by 2023 women earned 83% of what men earned on average. The wage gap and resulting investment disparity persists despite women’s increasing presence in higher-paying industries.
The full report can be found here: https://investorsobserver.com/research/research-women-lose-1-million-in-retirement-wealth-due-to-gender-wage-gap/
Investors Observer is a financial technology company, also known as O2 Media, that provides investing tools and data for self-directed investors, enabling them to make data-driven investment decisions. It is owned by Joseph Meyer, and was previously owned by Jared Kushner.
