What happened
Men saved an average of $7,007 and women saved an average of $3,146 in 2022, according to New York Life’s latest Wealth Watch survey. The average amount saved overall was $5,011.
Levels of financial stress and optimism also differed considerably by gender. When asked about the current state of their finances going into 2023:
- 37% of men were hopeful, compared to 28% of women
- 26% of men were stressed, compared to 39% of women
- 26% of men felt on track to meet their financial goals, compared to 17% of women
- 26% of men felt anxious, compared to 36% of women
So what
The amount of money a person can save is one of the most important factors in their overall financial health. Having more money in your bank accounts and retirement plans provides more security. Because women save less than half as much as men, it leads to higher stress levels and makes it much harder to reach financial goals.
There are a couple of likely reasons for this gender savings gap. The most significant is the gender pay gap. According to recent data on the average U.S. income, women earned 73% as much as men in 2021. Their median salary was $36,726, compared to $50,391 for men.
In addition, women are more likely to serve as caregivers to aging parents. This can lead to both stress and financial strain as they take on more expenses. "Of the 53 million Americans serving as caregivers, 61% of them are women as reported by AARP in 2020," said Suzanne Schmitt, Head of Financial Wellness at New York Life in the news release for the Wealth Watch survey.
Now what
The massive difference in savings by gender is unacceptable, and unfortunately, there's no simple solution. Solving it depends on getting rid of the gender pay gap, which is one of the reasons why the fight for equal pay is so important.
While eliminating the gender pay gap as a whole requires societal change, there are ways to fight for fair pay on an individual level. To avoid getting paid less because of your gender, make sure that you:
- Know your worth. Research salary data online for your position to see how your pay compares to the average.
- Discuss salaries with others, in particular male colleagues. This is another way to see if you're being appropriately compensated.
- Don't hesitate to ask for a raise or change jobs. When you provide value as an employee, you have every right to maximize your earnings.
If you're underpaid, increasing your income is one of the best steps you can take to improve your finances. However, to benefit the most, you also need to make a plan for that additional money. When you get a raise, decide how much of it you're going to put in savings accounts, how much you'll invest, and how much you'll use for guilt-free spending. That way, your higher salary goes to good use.
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FAQs
Men saved an average of $7,007 and women saved an average of $3,146 in 2022, according to New York Life's latest Wealth Watch survey. The average amount saved overall was $5,011. Levels of financial stress and optimism also differed considerably by gender.
Who saves more money, men or women? ›
By the time women retire, we have 44% less saved than men, according to a Vanguard study. Men's larger account balances are primarily based on higher wages, not due to greater participation levels in their retirement plans. One of the biggest reasons women save less is the gender pay gap, but it's not the only reason.
Who spends more money, males or females in 2022? ›
These gaps are reflected in spending: Unmarried men spent, on average, a bit more than unmarried women in 2022, according to the latest Bureau of Labor Statistics data.
Are women more financially stable than men? ›
Key findings. Women are less likely than men to report they're doing well financially but are more likely to curb spending. Just 23% of women say they're doing well or very well financially — 11 percentage points behind men. Additionally, 37% of women aren't able to save money, versus 22% of men.
How many Americans have $100,000 in savings? ›
14% of Americans Have $100,000 Saved for Retirement
Most Americans are not saving enough for retirement. According to the survey, only 14% of Americans have $100,000 or more saved in their retirement accounts. In fact, about 78% of Americans have $50,000 or less saved for retirement.
Why do men save more money than women? ›
The discrepancy between the dollar amounts saved and the percentages of incomes earmarked for savings can be attributed to the reality that the average woman is still earning less than the average man.
Which gender has the most debt? ›
Women are stereotypically seen as irresponsible spenders, but the data doesn't back this up. According to a 2019 Experian study, men carry more debt than women across nearly all categories, including credit card debt — the study found that men have $125 more in credit card debt than women on average.
Which gender is more richer? ›
In fact, the gender wealth gap is considerably larger than the gender wage gap. Families headed by women have just 55 cents in median wealth for every dollar of wealth owned by families headed by men, as discussed in a Jan. 12, 2021, In the Balance article.
What gender is the biggest consumer? ›
Daily, women spend more time than men making economic decisions for their families, encompassing everything from consumer goods to services. Women drive 70-80% of all consumer purchasing through buying power and influence.
What gender spends the most? ›
According to Capital One Shopping Research, women spend nearly $35 trillion globally on consumer goods, equivalent to 50% of worldwide consumer spending. American women tend to shop more than men, with 39.4% of women shopping on any given day, compared to 33.7% of men.
Not surprisingly, studies have found that the average woman's investment strategy and eventual performance tends to be more stable than the average man's.
Who is more financially literate men or women? ›
Across the world, women score lower on financial literacy tests than men. According to a 2020 study by the OECD, on average, men score higher in financial literacy tests than women by 4 points out of 100. However, in some countries, the difference is larger than 10 points.
What percent of women are in debt? ›
41% of female undergraduates take on student debt, compared to 35% of male undergraduates, and more women take on debt for graduate studies as well. More than 70% of Black students go into debt to pay for higher education, compared to 56% of white students.
What is the average 401k balance at age 65? ›
Average and median 401(k) balances by age
| Age range | Average balance | Median balance |
|---|
| 35-44 | $76,354 | $28,318 |
| 45-54 | $142,069 | $48,301 |
| 55-64 | $207,874 | $71,168 |
| 65+ | $232,710 | $70,620 |
2 more rowsMar 13, 2024
Can I retire on 500k plus Social Security? As we have established, retiring on $500k is entirely feasible. With the addition of Social Security benefits, this becomes even more of a possibility. In retirement, Social Security benefits can provide an additional $1,900 per month, on average.
How many people retire with no savings? ›
About 1 in 4 have no retirement savings, according to research released Wednesday by the organization that shows how a graying America is worrying more and more about how to make ends meet even as economists and policymakers say the U.S. economy has all but achieved a soft landing after two years of record inflation.
Who manages money better, women or men? ›
Not surprisingly, studies have found that the average woman's investment strategy and eventual performance tends to be more stable than the average man's.
Who earns more money men or women? ›
What is the wage gap currently? Women earn an average of 16% less than men. For every dollar earned by men, women earned 84 cents. The controlled gender pay gap, which considers factors such as job title, experience, education, industry, job level and hours worked, is currently at 99 cents for every dollar men earn.
Who saves the most money? ›
Countries with the highest savings rates
- Switzerland: 19.3% savings rate.
- Sweden: 13.3% savings rate.
- Netherlands: 12.3% savings rate.
- Luxembourg: 11.6% savings rate.
- France: 11.2% savings rate.
