American men outpace women when it comes to retirement readiness, a study by Aon Hewitt study found. As a result, they’ll be able to retire one year earlier than women – at age 68 – while still meeting their financial needs.
A strong majority (83 per cent) of women who responded to the survey aren’t saving enough for retirement, compared to 74 per cent of male respondents. While both participate in employer 401(k) plans at the same rate (79 per cent), women put 7.5 per cent of their salary towards their plan while men put aside 8.7 per cent.
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The study, which examined the retirement saving and investing decisions of 3.5 million defined contribution participants from more than 125 U.S. employers, also found that women’s defined contribution plans had an average balance of $71,060 U.S. in 2015, compared to $119,150 for men in the same year.
“Women face significant stumbling blocks when it comes to saving enough for retirement, including longer lifespans, lower salaries and a greater likelihood of taking hardship withdrawals from their 401(k)s,” said Virginia Maguire, director of retirement products and solutions at Aon Hewitt, in a release.
“Making retirement and financial well-being a priority is paramount for overcoming those challenges.”
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