When they retire: the higher the position, the less money women have in their pockets
Created: 12/22/2022, 3:30 p.m
By: Jasmine Farah
Women in management positions are still few and far between.
In many professions, they also earn less than their male colleagues.
If you retire, you're at a disadvantage.
Nowadays, many women are still disadvantaged in professional life.
Inequality begins with salary.
Accordingly, female colleagues earn significantly less than male colleagues for the same job.
In addition, the management floors of many companies are still dominated by men.
However, if a woman occupies a management position, she continues to lag behind in terms of her lifetime income.
This does not change over the course of a career, as a current analysis by the World Economic Forum shows.
Female executives: Less lifetime earnings than male colleagues
The surprising thing about it is that women who do simple work also earn less, but when they retire they still have 83 percent of the lifetime income of their male colleagues.
On the other hand, at the end of their careers, female, well-trained employees and executives receive only about two-thirds of what men receive in the same position.
Later in old age, women in management positions have less lifetime income than their male colleagues.
© Wavebreak Media Ltd/Imago
"However, the gap in earnings in Germany becomes larger the more demanding and complex a job profile is," says Florian Frank, compensation expert at the WTW consultancy, who analyzed the data for Germany.
The following factors were used to calculate lifetime earnings upon retirement:
Salary (from age 22 to retirement)
State Pension Claims
Employer-funded pension
real estate ownership
Savings Assets
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Ultimately, it was shown that Germany is average in an international comparison.
On the other hand, lifetime income is distributed most fairly in South Korea and Spain.
In Nigeria, Argentina and Turkey, women receive even less than in Germany – when they retire, they only have about 60 percent of what men have earned in earnings and assets up to that point.
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Many women with families get stuck in the part-time trap
In most cases, according to Frank, it is clear why lifetime income is still distributed so unequally.
The main reasons are not only the wage differences between men and women, also known as the “gender pay gap”, but also unequal career opportunities.
Many women with families get stuck in the part-time trap or in low-paying jobs for most of their careers.
"Germany has a shortage of childcare facilities and a disproportionate amount of unpaid care work done by women," Frank told
Business Insider.
And: "Anyone who is on parental leave does not negotiate a salary," Frank concludes.