Press release
T. Rowe Price: Baby Boomer Women Significantly Lag Baby Boomer Men In 401(K) Savings
BALTIMORE, June 25, 2019 /PRNewswire/ -- Baby boomer women have a median 401(k) savings balance of $59,000, less than half of the $138,000, median balance of
About this update from T. Rowe Price Group, Inc.
[{"type":"text","content":"BALTIMORE, June 25, 2019 /PRNewswire/ -- Baby boomer women have a median 401(k) savings balance of $59,000, less than half of the $138,000, median balance of baby boomer men, according to a recent T. Rowe Price survey focused on the financial behavior and attitudes related to gender. This savings gap carries over to millennial women, who have a median 401(k) balance that is $30,000 less than the median balance of millennial men.\nThe survey also found that, based on the median annual incomes of both men and women, women earn almost $27,000 less than men--underscoring the gender pay gap. Additionally, they are deferring less of their income to their 401(k)s in comparison, and 66% of the women who are contributing below the recommended rate say that they are saving as much as they can afford. These women are also significantly less likely to be saving for retirement in accounts outside of their 401(k)s compared to men, with 10% saying they use other vehicles compared to the 32% of men.\nFurther, once in retirement, while a comparable amount of both men and women continue to work, women are most likely to say they continue to work because they need the money while men are most likely to say it's for mental stimulation. \n\"The gender income gap is contributing to a domino effect on women's finances; lower earnings can have an effect on their current financial decisions which ultimately impacts their financial future, including their retirement savings,\" said Judith Ward, senior financial planner at T. Rowe Price. \"As women, it's critical for us to be proactive when it comes to our money and to seek the guidance and education that is necessary to put us on the path toward a successful financial future.\"\nADDITIONAL FINDINGS:\nRetirement Expectations. Women are more likely to believe they will have to reduce their standard of living in retirement (46%) compared to men (37%). Further, nearly half of men believe they will live as well or better in retirement compared to when they were working, compared to one-third of women who expressed that sentiment. Life in Retirement. Significantly more women are single or widowed once in retirement compared to men: Within the first five to 10 years of retirement, 33% of women respondents were either widowed or divorced compared to 17% of men, and after 11 years, the number of single or divorce...