Women save a larger percentage of their incomes for retirement than men, but men end up saving more, says a new study by Vanguard. But no matter the gender, Interest.com found that only Nevada retirees are collectively prepared for retirement.
Vanguard found that at every income level, more women than men contribute to their company’s retirement programs. For instance, almost 80 percent of women earning $75,000 to $99,999 a year participated in 2013, while only 60 percent of their male counterparts did. The group with the smallest gap was men and women with over $100,000 in salary: 88 percent of men and 90 percent of women.
Women even contribute more of their income. However, when broken out by wage group, the difference between men and women’s contributions did not differ more than 1 percent in Vanguard’s study.
Even though women set aside more of their income, men still end up with more. The report showed an average of $121,201 in male accounts and $78,007 in female accounts. The median account balances of both men and women had a disparity of almost $10,000.
The study claimed that the wage gender gap was to blame, and that matches up with the recent press release from the U.S. Census. According to the census, women made just 78 percent of what men did in 2013. The median yearly income of a female working full time was $39,157, and a man’s was $50,033.
No matter what men and women are investing, however, it doesn’t seem to be enough. Only Nevada retirees live off of at least 70 percent of a pre-retirement income, according to data compiled from the Census Bureau by Interest.com. They took the median income of households where the head was 45 to 64, and compared that to the median income of homes with residents 65 and up. Their conclusions were that the nation’s retirees are living off of about 57 percent of what their younger neighbors are, and that all but one of the states are in good shape.
Money isn’t the only key to a happy retirement though. “(Retirees) increasingly find that happiness is found not in having more, but in connecting more deeply,” Marc Freedman wrote for The Wall Street Journal.