In the United States, wealth distribution varies significantly between married and unmarried households. Households led by married couples tend to accumulate more wealth than those headed by single adults. Within the group of unmarried adults, a pronounced wealth gap exists between men and women. Additional disparities are influenced by parental status, say Pew Research Centre.
According to 2022 data from the U.S. Census Bureau, typical wealth levels reveal stark contrasts. The average wealth for single men stood at $82,100, while single women averaged only $58,100. This disparity highlights systemic financial inequalities that unmarried adults face, particularly women.
IMPACT OF PARENTHOOD ON WEALTH
The wealth of unmarried women diverges significantly based on whether they have children under 18 living in the household. Women without children exhibited higher wealth levels compared to their counterparts with children. Specifically, households led by unmarried women without children had a median wealth of $87,200, aligning closely with unmarried men. Conversely, single mothers faced an alarming median wealth of just $10,700.
WEALTH DISPARITIES; ANALYZING KEY HOUSEHOLD ASSETS
A household’s total wealth consists of its assets minus liabilities. When examining key assets, unmarried women without children match unmarried men, but single mothers lag in every category.
Home Ownership
In 2022, home ownership statistics showed that 50% of unmarried women without children owned their homes. This is comparable to 47% of unmarried men. In stark contrast, only 34% of single mothers owned homes, reflecting significant barriers to property ownership for this demographic.
Home Equity
The home equity of unmarried women without children reached a median of $165,000. This figure slightly surpasses the $150,000 median for unmarried men. Single mothers, nonetheless, faced lower median home equity, at $114,000, underscoring the financial challenges they face.
Retirement Account Ownership
Retirement savings present another critical area of disparity. Among household heads, 48% of single women without children and 50% of unmarried men owned retirement accounts in 2022. Only 40% of single mothers had retirement savings, emphasizing a potential vulnerability in their long-term financial stability.
Retirement Savings
Single women without children who had retirement accounts reported a median balance of $43,700. This amount closely trails the $45,000 median for single men. In stark contrast, single mothers had a meagre median retirement account balance of $12,000. This reveals the financial strain of raising children while saving for retirement.
AGE AS A FACTOR IN WEALTH DISPARITIES
While unmarried women generally earn less than unmarried men, the wealth levels of unmarried women without children are similar. This can largely be attributed to age. Older household heads typically possess greater wealth. In this context, unmarried women without children tend to be older. Their median age is 61 compared to 50 for unmarried men.
Once age is factored in, the wealth equation shifts. For household heads younger than 65, the median wealth of unmarried women without children drops to $38,900. In comparison, it is $59,400 for unmarried men. This illustrates that age significantly influences financial standing.
WEALTH DISPARITIES; CHALLENGES FOR SINGLE MOTHERS
The financial landscape is even more precarious for households headed by unmarried women with children. The median age of single mothers is 39, which correlates with lower wealth accumulation. As younger household heads, single mothers face a steeper uphill battle in building wealth, compounded by the challenges of parenting.