Although men\u2019s 401(k) balances tend to be larger than women\u2019s, there is evidence to suggest that women may outperform men where retirement planning is concerned. Vanguard observed that at the majority of income levels, women are more inclined to take part in their employer\u2019s 401(k) plan, more inclined to enroll in the plan on a voluntary basis and more inclined to contribute a greater percentage of their income than men.<\/p>\n
For instance, women who earn $75,000 or more on a yearly basis contribute approximately a full percentage point more of income than men who earn the same amount. One percentage point can translate into a significantly greater nest egg and much greater income for retirement. <\/p>\n
Women may be better at saving, but because of men\u2019s larger incomes and longer period of time working, their 401(k) balances tend to be larger. While men\u2019s 401(k) balances are about $121,000, women\u2019s are about $78,000. <\/p>\n