Despite being better educated than ever, millennial women are falling behind their male counterparts when it comes to saving for retirement. While both millennial men and women are putting away an average of 8 percent of their salaries for retirement, according to a new survey by T. Rowe Price, women are trailing men when it comes to 401(k) savings. For women ages 18 to 33 contributing to a 401(k), the median balance is $11,000 — but for men it’s twice as much: $22,000. Millennial men are saving more on a median personal income that is already higher ($63,000) than that of women ($48,000). Anne Coveney, the senior manager of Retirement Thought Leadership at T. Rowe Price is not surprised. “I think it’s pretty well established in this country that there is a pay gap. A key contributing factor is that women tend to work in different professions, so I think we’re seeing some of that come through in our study.” A couple of the other contributing factors are that more of those women surveyed are working part time, as well as the fact that Millennial women are deeper in debt, with an average of $20,000 in student loan debt versus $14,000 for men. Elli Dai, Wells Fargo’s senior VP of Participant Services, sums it up like so: “When you add that men are earning more than women and you put all of that together, it really sets the stage for that significant difference in savings overall.”
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