MADISON, Wis. — Equal Pay Day highlights deep-rooted disparities that extend far beyond annual wages and have lasting consequences for women’s financial security, according to a statement released by Kim Sponem, CEO of Summit Credit Union.
Equal Pay Day, which fiscal year today, March 26, marks how far into the current year women must work to earn what men earned the previous year. But Sponem said the date serves as a broader reminder of structural inequities that shape lifetime earnings and retirement outcomes.
“Retirement insecurity isn’t about a lack of discipline or effort,” Sponem said in the statement. “It’s about how careers unfold over decades—and how early decisions around pay, promotion and opportunity shape outcomes far down the road.”
According to the statement, over a 40-year career the average woman earns more than $500,000 less than her male counterpart. That gap translates into smaller retirement savings, lower employer contributions and reduced Social Security benefits, with disparities even more pronounced for women of color.
Financial Hardship Later in Life
As a result, women are significantly more likely to face financial hardship later in life. Citing national survey data, the statement said 59% of women and 81% of low-income women report they do not earn enough to save for retirement. In addition, U.S. Census Bureau data show that half of women ages 55 to 66 have no personal retirement savings.
Sponem said such outcomes are often attributed to individual financial decisions, but that narrative overlooks systemic factors embedded in workplace practices and career trajectories.
“Most people assume that poverty in retirement comes down to poor choices,” Sponem said. “But for millions of women, that’s not how it works.”
The statement emphasized how even small differences early in a career—such as slightly lower starting salaries or delayed promotions—can compound over time. Because raises, bonuses and retirement contributions are typically calculated as a percentage of pay, initial disparities can widen significantly over decades.
Other Contributors
Sponem also pointed to compensation practices, including salary negotiations, as a contributor to inequity. While negotiation is often encouraged, research cited in the statement indicates women who negotiate may face social and professional backlash, making negotiation an imperfect solution.
“The real issue isn’t who negotiates better—it’s that negotiation itself introduces unnecessary variability into starting pay,” Sponem said.
She urged organizations to consider eliminating negotiated starting salaries and to avoid asking candidates about prior compensation, noting that anchoring pay to past salaries can perpetuate existing disparities.
Underrepresentation in Leadership
Beyond pay practices, Sponem highlighted the importance of career advancement opportunities. Women remain underrepresented in higher-paying leadership roles, according to research referenced in the statement, which found that for every 100 men promoted to manager, only 93 women—and 74 women of color—receive similar promotions.
Caregiving responsibilities were also identified as a critical factor affecting long-term earnings. Women who leave the workforce to care for children or aging family members often return at lower pay or in reduced roles, effectively resetting their career trajectory and diminishing retirement savings potential.
“Time spent caregiving should pause a career—not penalize it,” Sponem said, adding that reentry pay should reflect current market conditions and prior experience should be fully credited.
The Role of Employers
Sponem said employers play a central role in addressing these issues through hiring, compensation and promotion practices. Recommended steps include standardizing pay structures, eliminating salary history questions, tracking pay equity data and improving representation in leadership positions.
“Closing the gender pay gap isn’t only about fairness,” Sponem said. “It strengthens families, communities, and the broader economy.”
She added that Equal Pay Day should serve as a call to action for organizational leaders.
“Equal Pay Day is not just a reminder of how far we still have to go—it’s a test of leadership,” Sponem said. “The choices organizations make today will determine whether decades of effort translate into lasting security tomorrow.”
