A larger share of women than men aren’t saving for their future selves and could be losing out on hundreds of thousands of dollars over their lifetime as a result.
More than a quarter of women (26 percent) working full-time, part-time, or looking for employment didn’t contribute to their retirement savings between August 2023 and 2024, compared to 16 percent of working men, according to Bankrate’s 2024 Retirement Savings Survey. A similar percentage of Black and Hispanic working women (24 percent) didn’t contribute to their retirement savings during that time, a slight improvement from last year (29 percent).
The reasons why women save less for retirement aren’t clear-cut. While the gender pay gap is part of the problem, research also suggests women feel misunderstood in the financial world, which may be driving their behavior. Generally, women are more likely to keep more of their savings in cash, feel less confident about their investment knowledge, and report higher levels of financial stress.
Taking action, however, can make the biggest difference in decreasing stress and building financial confidence — and many women said they would make positive financial moves this year. Fidelity research found that 40 percent of women planned to contribute to an emergency fund and 38 percent planned to save more for retirement between March and September this year. Thirty-five percent said they would pay down debt and adjust their spending habits during that period, the survey found.
Women feel that they can and should be saving more for retirement and they don’t feel like they’re taking enough action. We’re making progress, but there’s still a long way to go.
— Lorna Kapusta, Head of Women and Engagement at Fidelity Investments
Key takeaways on women’s retirement savings
Nearly 3 in 4 working women (74 percent) are contributing to their retirement savings, a four percentage-point increase between 2020 and 2024, according to Bankrate’s Retirement Savings Surveys.
In 2020, 70 percent of employed women made contributions to their retirement savings, but despite progress, working women save less than working men for retirement. Out of working women surveyed between August 2023 and 2024, 26 percent did not contribute to their retirement savings, compared to 16 percent of working men. The percentage remains the same as last year, showing no improvement year over year in terms of retirement savings. “The investing industry has historically used language full of jargon, which can be a barrier to understanding.”