retirement

The Wage Gap Persists Into Retirement

The difference can compound and leave women with far less retirement income.

Men and women contribute to their 401(k) at similar rates — 7.9% and 7.5% of income, respectively. But combined with the wage gap — a woman, on average, earns about 80 cents for every dollar a man makes — the difference can compound and leave women with far less retirement income.

After 40 years in which a man and woman earned the average salary for their gender, the man would end up with a 401(k) balance that could generate a $2,200-a-month lifetime payout, but the woman would get only $1,500 a month, according to data compiled by Human Interest, a 401(k) provider for small and midsize businesses. “Just like savings can compound, the wage gap can compound, too, by the time a woman reaches retirement,” says Jeff Schneble, CEO of Human Interest.

Married people tend to be better savers than singles. And married women save more in their 401(k) — an average of 9.0%, compared with 8.2% for men.

Most Popular

Where's My Refund? How to Track Your Tax Refund Status
tax refunds

Where's My Refund? How to Track Your Tax Refund Status

If you're waiting for your tax refund, the IRS has an online tool that lets you track the status of your payment.
March 2, 2021
Where's My Stimulus Check? Use the IRS's "Get My Payment" Portal to Get an Answer
Coronavirus and Your Money

Where's My Stimulus Check? Use the IRS's "Get My Payment" Portal to Get an Answer

The IRS has an online tool that lets you track the status of your stimulus checks.
February 19, 2021
Your Guide to Roth Conversions
Special Report
Tax Breaks

Your Guide to Roth Conversions

A Kiplinger Special Report
February 25, 2021

Recommended

Vote to Reinsert $15 Minimum Wage in Stimulus Bill Fails
Politics

Vote to Reinsert $15 Minimum Wage in Stimulus Bill Fails

Led by Sen. Bernie Sanders, the effort to get the $15 minimum wage provisions back into President Biden's COVID-Relief package falls short in the Sena…
March 5, 2021
The Cost of Retirement Has Tripled! But a New Way of Planning Can Help
retirement planning

The Cost of Retirement Has Tripled! But a New Way of Planning Can Help

With today’s low interest rates and paltry dividends, the old way of saving for your retirement and living off your dividends and income to preserve y…
March 5, 2021
The Basics of Required Minimum Distributions: 12 Things You Must Know About RMDs
Financial Planning

The Basics of Required Minimum Distributions: 12 Things You Must Know About RMDs

Retirement savers who are 72 must start withdrawing funds from tax-advantaged retirement accounts. Here’s what you need to know about required minimum…
March 4, 2021
A COVID Storm Hits Senior Living
Coronavirus and Your Money

A COVID Storm Hits Senior Living

The pandemic has created significant challenges for all types of senior living communities. Because of that, it's more important than ever to review a…
March 3, 2021