Formula of Women’s Poverty
We can now design a formula of women’s poverty to predict the likelihood of women ageing into poverty. The key variables of this formula are: gender pay gap, financial loss due to unpaid care, and age discrimination.
For the first time, we are now able to estimate the lifetime earnings that women lose as a result of caregiving. These can amount to almost $AUD 500,000. This is what unpaid caregiving for children and parents costs women over the course of their careers in pay and promotion, and cuts to their retirement savings, according to a first-of-its-kind report by the U.S. Department of Labor.
We can extrapolate that the figures would be roughly comparable in Australia. This loss of anywhere up to half a million dollars in earnings, helps us to understand why women are ageing into poverty and homelessness. It provides us with the missing piece in designing a formula exposing the probability of women ageing into poverty.
