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Men’s retirement accounts more than 50% bigger than women’s

(Peter Macdiarmid/Getty Images)

New research has showed that men’s retirement savings in the US are on average more than 50 percent higher than those of women. A study of Vanguard’s retirement investor plans released on Wednesday showed that men’s accounts averaged $123,262 while women’s accounts were $79,572. This is despite the fact that women are actually better savers: regardless of their income, women saved between 7 percent and 16 percent more than men. When it came to women who had an income of less than $100,000, the Vanguard data showed that women were far more likely to invest in a workplace savings plan, at 20 percent higher participation rates than men. And the return on men and women’s portfolios were similar: a median 10.9 percent for men, and 10.9 percent for women. So the reason why women are saving less money has nothing to do with the financial choices they make, but only with the fact that they are earning less: male participants on average earned 25-33 percent more than women.

Read the full story at Forbes.

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