Women Are Out-Saving Men for Retirement – So Why Do They Retire With Less?
Women are often more consistent retirement savers than men, according to Vanguard’s How America Saves 2026 report. They participate in 401(k) plans at higher rates and frequently save a larger percentage of income. Despite these stronger savings habits, lower earnings and career interruptions continue to drive the women’s retirement savings gap, which can result in significantly smaller retirement account balances over time.
Takeaways
- Women participate in 401(k) plans at higher rates than men across most income levels.
- Women often save an equal or higher percentage of income for retirement than men.
- Despite stronger savings habits, women’s average 401(k) balances are significantly lower than men’s.
- Lower lifetime earnings and caregiving-related career interruptions are major drivers of the retirement savings gap.
- Capturing the full employer match, increasing contribution rates, and using catch-up contributions may help women build larger retirement balances.
Women Are Saving More for Retirement Than Men
Women are more likely to enroll in their employer’s 401(k) and contribute a larger share of their income than men at most income levels – yet their account balances still trail men’s significantly, according to Vanguard’s How America Saves 2026 report. [1]
You might assume the balance gap exists because women aren’t saving enough.
The data says otherwise.
Vanguard’s report analyzed nearly 5 million retirement savers across more than 1,300 workplace plans.
At income levels from $30,000 all the way up to $150,000 and beyond, women were more likely to enroll in their employer’s plan than men.
At the $50,000–$74,999 income level, 89% of women enrolled compared to 85% of men. [1]
At the $75,000–$99,999 income level, women deferred 8.1% of their pay compared to 7.8% for men.
At $100,000–$149,999, that gap widened – women deferred 9.4% versus 8.8% for men. [1]
On top of that, women tend to make steadier investment decisions, sticking with professionally managed fund options and making fewer trades, which research links to better outcomes over time, according to Jeff Clark, head of defined contribution research at Vanguard. [2]
The habits are there. Women are doing the work.
So why are the balances still lower?
Why Do Women Have Less Retirement Savings Than Men?
Women have less in their 401(k) accounts than men primarily because they earn less, and a smaller paycheck means smaller contributions, a smaller employer match, and less money compounding over time. This dynamic is one of the primary drivers of the women’s retirement savings gap.
Even with stronger savings habits, men’s average 401(k) balance of $194,597 runs about 30% higher than women’s $146,476. [1]
The gap shrinks considerably when you compare women and men at the same income level.
In the $30,000–$49,999 range, women’s average balance of $31,806 actually edged out men’s $31,288. [1]
Across the broader $30,000–$149,999 range, the difference between men’s and women’s balances stayed within 10%. [2]
Same savings habits. Similar income. Much closer balances.
The pay gap is doing most of the damage.
What’s Driving the Women’s Retirement Savings Gap?
Two factors sit at the root of the women’s retirement savings gap: Earning less than male counterparts over a career, and spending time away from work for caregiving – both of which shrink the dollars flowing into a 401(k) year after year.
Full-time working women earn roughly 81 cents for every dollar a man earns, according to the U.S. Department of Labor. [2]
A higher savings rate on a smaller paycheck still produces a smaller dollar amount going into the account each year.
Think of it this way: A woman earning $55,000 who contributes 7% puts $3,850 into her 401(k) annually.
A man earning $70,000 and contributing the same 7% puts in $4,900.
Same habit. Nearly $1,000 difference every single year.
The employer match widens it further.
With a 50% match on the first 6% of pay, the woman’s employer adds $1,650 a year.
The man’s employer adds $2,100.
That $450 annual difference doesn’t just sit there – it compounds over 20 or 30 years.
Then there’s caregiving.
Taking time away from work to raise children, care for aging parents, or support a sick spouse typically means pausing contributions and forfeiting employer match dollars for however long that absence lasts. [2]
According to a 2025 joint report by AARP and the National Alliance for Caregiving, women make up the majority of unpaid caregivers in the U.S. [2]
The paycheck gap and the career gaps feed each other.
Together, they create much of the women’s retirement savings gap seen in retirement accounts today.
What Can Women Do to Help Close the Retirement Savings Gap?
You can’t undo a pay gap or reclaim years spent caregiving. But there are steps you may be able to take inside your 401(k) to help reduce the impact of the women’s retirement savings gap over time.
Capture Every Dollar of Your Employer Match
Your employer match is compensation you’ve earned. Any portion you don’t capture is money left behind. We recommend you check exactly what contribution rate is required to receive the full match from your employer, and make sure you’re meeting it.
Increase Your Contribution Rate
Small increases add up over time.
Bumping your contribution rate by just 1% on a $60,000 salary puts an extra $600 a year into your account – before a single dollar of investment growth.
Even a modest annual increase may make a noticeable difference over a decade or more.
Use Catch-Up Contributions after Age 50
Once you turn 50, the IRS allows you to contribute beyond the standard annual limit.
In 2026, the standard 401(k) limit is $24,500, and workers 50 and older may add another $8,000 on top of that – for a total of $32,500. [3]
If you’re between ages 60 and 63, that extra amount rises to $11,250, bringing the total to $35,750. [3]
Review How Your Money Is Invested
Contributing more only helps if your money is invested in a way that matches where you are in life. Log into your account and look at where your money is actually going.
A separate Vanguard study found that women are less likely to see themselves as investors – and that identity gap may lead to holding fewer stocks and more cash than their time horizon calls for, potentially leaving long-term growth on the table. [4]
Once you know where you stand, the next step is making sure your portfolio is still aligned with your original plan.
This is called rebalancing.
Rebalancing means resetting your portfolio back to its original target allocation.
Let’s say you started with 60% in stocks and 40% in bonds.
After a stretch of market movement, you might now be sitting at 80% stocks and 20% bonds without ever making a single change.
That shift may expose you to more risk than you planned for, or less growth than your timeline needs.
Rebalancing helps you stay in what’s working and out of what’s not.
If you’re not sure how to evaluate your investments or rebalance correctly, that’s where a 401(k) advisor may be able to help.
Get Help with Your 401(k)
If you are looking for a way to improve your account performance, professional 401(k) management may help you in more ways than you might think.
Although you might have basic investment knowledge, utilizing a professional to make the moves that require skill and care may change the performance of your account from good to great…
And potentially boost retirement savings.
Have questions or concerns about your 401(k) performance? Click below to book a complimentary 15-minute 401(k) Strategy Session with one of our advisors today.
Sources
[1] Vanguard. How America Saves 2026. June 2026. https://institutional.vanguard.com/content/dam/inst/iig-transformation/has/2026/pdf/how-america-saves-2026.pdf
[2] Agostino, Sarah. Women have better retirement savings habits but lower 401(k) balances than men, Vanguard finds. CNBC. June 18, 2026. https://www.cnbc.com/2026/06/18/retirement-savings-habits-of-women-vs-men-vanguard.html
[3] Internal Revenue Service. 401(k) limit increases to $24,500 for 2026; IRA limit increases to $7,500. November 13, 2025. https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500
[4] Vanguard. Saver or investor? Why the answer matters for women. June 16, 2026. https://corporate.vanguard.com/content/corporatesite/us/en/corp/articles/saver-or-investor-why-the-answer-matters-for-women.html
