Women face challenges when it comes to earning a decent living. A recent report by the U.S. Census Bureau showed that women make about 80 cents for every dollar earned by a man. This wage gap also makes it more difficult for women to save for retirement.
A study by Vanguard found that although women are 10 percent more likely to enroll in a company-sponsored retirement plan and more likely to put their money into a company saving plan, they averaged only $78,000 in retirement accounts versus $121,000 for men.
“Put simply, wages help determine how much people save,” says Jean Young, a senior research analyst with the Vanguard Center for Retirement Research. “The average wage for our male participants runs about 40 percent higher than women’s.”
Women also tend to take out loans from their retirement plans at a higher rate than men. According to financial services company TIAA-CREF, from the 29% of Americans who borrow money from their retirement accounts, more than half are women.
Resources:
Why Women Work Harder at Retirement Savings, Come Out With Less
Image by CDC/ Judy Schmidt
Tags: men, retirement savings, women
