While women in general might have less than men in their retirement accounts, they apparently are more involved and have more of a long-term plan for saving than men.
A contributor for Forbes shared the findings
illustrated in a recent report, “How America Saves,” which show the difference between male and female 401(k) participants. Women on average are more likely to voluntarily participate in their 401(k) and contribute a higher percentage of their salary, according to the report.
For example, women earning $75,000 a year or more contribute roughly a full percentage point more of salary than men with the same earnings. Over the course of one’s career and retirement, a one percentage point edge can mean an appreciably larger nest egg and dramatically more retirement income.
The report cited also theorizes about why men tend to carry a larger balance in their retirement accounts, stating that men tend to have larger salaries and more time on the job.
contributor contended that women’s investing traits could tend to be better for their long-term retirement planning. For example, he said, women are more likely to be patient and ride out investments when they’re underperforming, rather than panicking and selling them off.
(The author did note his skepticism at gender-based, finance-related studies, saying they tend to overstate the disparity between genders when there could be underlying issues that would help explain differences.)
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