Merrill Lynch Study Finds Gender Pay Gap is More than $1 Million Over Lifetime
Financial advisors working with female clients may have an opportunity to help them navigate the various factors that contribute to the pay disparity between men and women. Over a lifetime, that disparity adds up to more than a million dollars, according to a recent study cited by CNBC.com.
By the time women reach retirement, they've earned up to $1,055,000 less than men, according to a study conducted by Merrill Lynch, the news website writes. Work interruptions such as starting a family or caring for a sick family member play a part in this disparity, according to the study, CNBC.com writes. For example, 21% of women who returned to work say they were paid less for the same job they had prior to taking leave, according to the survey cited by the website.
And one in three mothers who came back to work after taking leave to care for their child ended up with lower-paying, less-demanding work, according to Merrill Lynch’s study, CNBC.com writes.
Edythe De Marco, managing director and wealth management advisor for Merrill Lynch, says addressing the gap will require corporate America to change — but also for women to make that change happen for themselves, according to the website.
And Beth Brooke-Marciniak, Ernst & Young's global vice chair for public policy and global sponsor for diversity and inclusiveness, says it’s important companies give female employees flexibility to manage their professional and personal responsibilities, CNBC.com writes.
For example, Merrill Lynch’s survey found that 77% of women look at money in terms of what it can do for their families.