Saving millions of dollars for retirement seems dubious for those in the most secure financial situations. But for many women, making their salaries stretch between pay periods is the most they can hope for. Long-term savings is simply out of the picture.
The U.S. Census Bureau estimates that nearly half of all Americans have no retirement savings to speak of. Yet women are in a much more precarious financial state than their male counterparts when it comes to their retirement readiness. Women’s median 401(k) account balances were 65% lower than for men in 2022, according to investment management firm T. Rowe Price. Women also contribute 43% less annually to their investment accounts, adding $5,421 per year, compared to $9,578 for men.
