Gender Gap male vs female

And Now For The Gender Gap

Aon Hewitt’s recent research reports gender parity in 401(k) plan participation, but not in retirement readiness.

They report that 83% of American women aren’t saving enough to meet their retirement needs – compared to 74% of men. Further, they project that women will need 11.5 times their final pay to meet their retirement needs versus 10.6 times pay for men. The study indicated there is a gap of 3.3 times pay between what women need and what they’re on track to have saved in order to retire at age 65; for men, this difference is just 2.0 times pay.

Salary disparities and slightly lower contribution rates (7.5% for women vs. 8.7% for men) combine to create lower plan balances even though men and women are participating in employer plans at the same rate of 79%.

The end result Aon Hewitt found was that the average plan balance for women in 2015 was $71,060, while for men it was $119,150.

Long story short, on the average, women will have to work until age 69 to meet 100% of their retirement needs, a year more than men.

Should you have any questions, please feel free to contact your QBI representative.

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