Our forecasts incorporate growth in your salary, using a gender-specific, education-based salary curve provided by Morningstar Investment Management.
The hard truth is that there are significant differences in salary curves by gender. The data shows that wages for women with bachelor’s degrees peak at age 40 in real dollars, but they keep climbing until age 55 for men. Using a gender-specific salary curve that matches industry data as opposed to a simplistic, fixed-salary growth assumption (e.g. 3% annually) provides a more realistic view of the actual amounts women can earn, save, and invest.
While the differences in salary between men and women have been extensively studied, the financial experiences of non-binary people aren’t clear yet. We choose to use the salary curves of women to project how much non-binary and gender non-conforming people will be able to invest, as they don’t typically experience the same privileges and advantages in the workplace that cisgender men do.