The average man has almost twice as much money in savings as women do, according to an exclusive Newsweek poll.
The disparity was highlighted in a new survey conducted by Talker Research from January 15 to January 20, which saw 1,000 employed U.S. adults quizzed on the subjects of debt and savings.
As part of the poll, respondents were asked: “How much do you currently have in savings? Please estimate a total across all accounts such as 401(k), Roth IRAs, etc.”
The results highlighted a stark contrast between the two genders. While the average male respondent was found to have saved $195,156.20, the average total among females answering the survey was almost half that amount at $105,498.50.
The average among all respondents, regardless of gender, was $145,778.30.
Donna Stefans, founder and lead attorney at Stefans Law Group PC, told Newsweek the disparity witness was “shocking but predictable” given several key factors.
“Men earn more on average than women. The gender pay gap is very real; women earn 84 cents on the dollar earned by men. That means women are paid less than men in more than 90 percent of the jobs at all levels of work and in almost every occupation,” she said.
If women make less, it follows that they are likely to save less, but Stefans believes this is only part of the issue.
“Women are also more likely to be caregivers, which, in turn, takes time away from paid work,” Stefans said. “They may become full-time caregivers for children and elderly parents or cut back to part-time to balance work and family.”
At the same time, Stefans notes that men tend to continue working full-time, meaning they have the money accumulated for their long-term retirement.
“Women are often the sacrificer because of the wage gap because men make more money,” she said. “It’s a vicious cycle.”
These lower wages and caregiver responsibilities mean women participate less in retirement accounts.
“There are fewer savings for now and in the future. This makes it absolutely more difficult for a woman in retirement who has had less time and earnings to save for the retirement years,” Stefans said.
Stefans also suggested that money and financial planning are simply “not popular topics for women to discuss. “Men discuss this topic all the time as part of doing business and are not intimidated by the conversation,” she said.
This has a knock-on effect.
“Women have less confidence in their investing and financial education, even if it isn’t the truth, so they tend not to invest their money, and it won’t grow if it sits in the bank versus putting their money into any of the investment markets that will grow at a greater rate to grow and save for the future, keeping it in the bank and cash cannot keep up with the investment markets,” Stefans said.
Ultimately, Stefans believes the results highlight the need for women to focus on “empowering themselves to empower their money” and gain greater financial freedom.
This random double-opt-in survey of 1,000 general population Americans was commissioned by Newsweek from January 15 to January 20. It was conducted by market research company Talker Research, whose team members belong to the Market Research Society (MRS) and the European Society for Opinion and Marketing Research (ESOMAR).
The post Average Man Has Almost Double the Savings Women Do appeared first on Newsweek.
