Despite only earning 80 cents for every $1 a man makes, women save more money for retirement than men, according to new data from Voya Financial.
Voya is reporting that among retirement plan customers, women earning over $90,000 have a greater average savings rate (10.3%) than their male counterparts (10%), potentially putting aside $516 more per year in retirement income than men. Among women earning less than $90,000, saving is on par with men, the data show.
“Saving for retirement should be a priority for everyone, but our participant data shows a promising trend that women in particular are taking action when it comes to their savings approach,” said Heather Lavallee, president of tax-exempt markets for Voya’s retirement business. “The reality, though, is that saving alone is often not enough. Our research indicates that only 25% of women prioritize investing money for the future, proving that there is still work to be done."
Voya's analysis also found that women think more rationally about investing, as opposed to being impacted by swings in the market.
“It’s clear that women possess the innate behaviors to exemplify financial success, but when they do invest, they are often looking for guidance through trusted relationships, such as that of a financial professional,” added Tom Halloran, president of Voya Financial Advisors. “Working with a financial professional can help alleviate some of the stress women often feel about investing, but it’s important to consider someone who not only has a history of success, but who has a solid awareness of the financial issues that women face today.”
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