For decades, there has been a difference in what women make compared to what men do. Despite the influx of women in the workforce amid World War II, which shifting trends of women work throughout the 20th century and beyond, women have continued to make lesser money than their male counterparts. According to the American Association of University Women (AAUW), it’s a persisting inequity that affects women throughout their lives, even impacting their retirement. Due to lower lifetime earnings, women usually earn less in Social Security and pensions.
The on-going wage gap issue is why, 25 years ago, the National Committee on Pay Equity (NCPE) created Equal Pay Day. According to the committee, the annual event aims to “symbolizes how far into the year women must work to earn what men earned in the previous year.”
According to the American Association of University Women (AAUW), the history of labor in America was founded on denying Black women financial compensation in varying degrees beginning with slavery. As a result, systems continued to rip opportunities for generational wealth away from Black Americans, paying them significantly less than their white counterparts.
In an interview with TIAA President and CEO Thasunda Brown Duckett on Good Morning America, Robin Roberts explained that “women still make 82 cents on the dollar compared to men.” And those numbers are even lower for Black women, who make 62 cents on the dollar when compared to men.
Those challenges are experienced by Black women across sectors and industries. According to the AAUW, the pay gap is even bigger in the service industry which Black women make up the majority of full-time workers. In a study conducted by the Statista Research Department, female employees working in various different service positions earned significantly less than their male colleagues.
Black women face challenges in more financially lucrative positions as well. According to the AAUW, Black women make up only 1% of high-paying engineering and computing position. And the Wall Street Journal reports that of the many chief executives in charge of America’s top 500 companies, only 1% are Black.
But Duckett gave shared a few tips and tricks for Black women to succeed in the workforce.
“Know your worth, and that starts by doing your research,” Duckett shared with Robin Roberts.
She recommended using sites like Glassdoor and Salary.com “to know what a competitive salary range looks like” for the position you’re applying to.
“Be okay with negotiating,” she continued. “Research shows that two out of three women never negotiate their pay.”
“We cannot be afraid to know our worth and ask for it,” Duckett added.
Duckett also shared some important information about preparing for retirement. Roberts said that women have 30% less in their retirement accounts than men. When asked what women can do get ready for retirement, Duckett said “get started.”
“Take full advantage of your employers benefits,” she said. “If they have a [retirement fund], start contributing. A little goes a long way.”
If your company doesn’t have a retirement plan, Duckett says consider opening an IRA account.
Duckett also explained that it’s particularly important for women to consider lifetime income solutions.
“Women retiring on average two years earlier and living on average 5 years longer,” she said. “When planning for retirement, you should think about having lifetime income solutions in your retirement portfolio like an annuity. Quite simply, [an annuity] is a steady paycheck in retirement that you never run out of money.”
“Knowledge is power,” Duckett concluded.
