Study: Filipino women retire reaching only 79% of what men earn

MANILA, Philippines — A new study found that by the time Filipino men and women retire, their accumulated wealth is not as equal as it's supposed to be.

In a study penned by global advisory and brokerage firm Willis Towers Watson and the World Economic Forum, women in 39 countries on average only reach 74% of the wealth men accumulate by time they retire. Within countries in Asia and the Pacific, the figure exceeds the global average by two points at 76%.

The stark disparity of wealth among genders highlights the inequalities faced by women in the workplace globally, as studies in the past show women in developed economies are paid less compared to men. 

The Philippines figured in the list of economies where the WTW Wealth Equity Index outpaced the global average. The Philippines eked out 79%, counting itself among developed economies such as China (78%), Japan (82%), South Korea (90%), and Singapore (79%). 

“The results from our global analysis are startling. It shows that there is a gender wealth gap consistently across the 39 countries that we studied,” said Manjit Basi, senior director for Integrated & Global Solutions at WTW.

The study employed qualitative and quantitative methods to dissect gender wealth equity within 39 chosen countries. 

Likewise, the study revealed that within APAC countries, India’s gender wealth gap stood high at 64%. Pay gaps, especially in professional and technical roles still persisted alongside limited opportunities for women to climb up the corporate ladder.

WTW cited an age-old concern that women had to forego their careers, even at a young age, to prioritize childcare. Likewise, the firm reckoned that financial literacy and long-term financial decisions are often relegated to men. WTW's Basi noted that these “influence women’s participation in paid employment and therefore their ability to build wealth.”

Broken down, the study showed that the gender wealth gap increases within senior roles. Women in senior expert and leadership roles globally raked in 62% less of what their male counterparts haul by retirement. 

Within mid-level professional and technical roles, the gap stood at 69% but dissipated in frontline operational roles at 89%. 

“It’s imperative that activities around gender diversity, equity and inclusion broaden to look at economic wealth at the end of women’s working careers,” said Clare Muhiudeen, WTW’s Asia head. 

“Pay is a fundamental factor that underlies the gender wealth gap and while addressing the gender pay gap will partially close the wealth gap, it won’t eliminate it entirely,” she added.