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- July 27, 2023 is Black Women Equal Pay Day.
- Over a lifetime, the pay gap costs Black women more than $900,000, which could be put toward retirement.
- Black women need to save aggressively, take advantage of 401(k) and IRA options early, and advocate for the payments they are owed.
July 27, 2023 black women equal pay dayIt commemorates the day in 2022 that, after seven months of extra work, black women will finally catch up to the average income of white men. Black women who work full-time year-round earn 67 cents for every dollar paid to white men.
This leads to large pay disparities that affect Black women on a daily basis (less money for food, rent, and health care), which in turn results in significantly lower retirement benefits.This alarming gender and racial pay gap persists. Black women’s educational attainment skyrockets Accomplished.
This pay gap typically forces Black women to work full-time, year-round. $900,000 for a lifetime’s work. The equivalent of $900,000 in full retirement benefits would be out of reach for many black women.
The main reason it’s important to have a fully funded retirement account is because research shows that women typically outlive their spouses. Women are 80% more likely than men After they quit their jobs, they end up living in poverty.
It’s important to shine a spotlight on this wage and income disparity and provide Black women with steps to help them overcome it and prepare for a successful retirement.
We know this pay gap exists, but what can we do to prevent it? Lynette Khalfani-Cox strives to fill this gap and offers some tips for successful retirement planning.
1. Start saving as soon as possible
“We know that women retire with far less savings than men,” Cox told Insider. “The way to combat this is to start saving as early as possible.”
People often think that they need to save large amounts of money on a regular basis. Really Save But that’s simply not true. “Start saving now,” Cox continued. “Save as much as you can. Be consistent. The money you start saving now has time to grow even more in your retirement accounts.”
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2. Automate your savings
This builds the “consistency” part of your savings. The only way to successfully save money is to make it a habit. “Automating your savings allows you to set it and forget it. Even better, it’s automatically deducted from your paycheck so you never forget,” Cox says. This way you can keep your money safe and increase your financial stability.
3. Harness the power of 401(k)s and IRAs
Believe it or not, some people don’t start contributing to their employer-sponsored 401(k) right away. “People think they can get their savings back later, but we found that’s not the case. If you miss out on savings for years, you can’t and won’t get it back. You can see the impact ‘on the amount of money you have available for retirement,”’ Cox said.
If your workplace offers a 401(k), start contributing as soon as you qualify. If you offer a match with a company, make sure to at least save the match. Aim to save 15% to 20% of your total salary.
And don’t feel like you need to belong to a company to save for retirement. Start funding your retirement today by investing in an IRA. A Roth IRA allocates after-tax funds to your retirement savings, so your investments grow tax-free.
4. Advocate for yourself
I’m here to urge you to jump in and advocate for yourself. Ask for the raises and bonuses you deserve. If you think you’re being paid less than a colleague with the same qualifications and experience, speak up. in new york, Employers must publish salary information along with job postingsThis will tell you how much you need to pay upfront.
Negotiate well yourself. I always tell them my salary range during interviews, and I always want to be at the top of that range. Remember that the salary you received when you joined the company will be the basis for any bonuses or raises, and the previous salary you will be given when you move to a new employer. So you literally set your current salary, future You pay based on how well you can negotiate on your own. Black women deserve to be paid what they are owed.
It’s important to prioritize saving and retirement as soon as possible. Retirement may seem far away, but it will come before you know it. While this is true for everyone, it’s an even bigger priority for Black women because they earn far less and have far less money for retirement. This pay gap can significantly reduce your ability to prepare for retirement, so it’s important to proactively take steps to overcome it.
