Retirement savings: Men compared to women

Women have $41,000 less saved than men over the course of a lifetime, according to a new study from ING Retirement Research Institute shows. For women with children, that gap expands to $61,000.

According to the study, among those who have savings in or outside of an employer-sponsored retirement plan, men have substantially more saved than women, $149,000 on average, compared to women, who averaged $108,000 in total savings. For women with children at home, this retirement savings figure dropped even further, to $88,000. 

A key driver of total retirement savings is the percentage of salary that individuals contribute to their employer-sponsored retirement plan. Mothers face additional hurdles when it comes to building their retirement security — while the income gap between men and women has narrowed in recent years, mothers tend to spend more time out of the workforce due to caregiver responsibilities. This reality reduces their earning and savings potential and also lowers Social Security benefits.

See earlier post: Will you have enough?