Closing the Gap: Women Are Making Strides in Retirement Savings

The gender gap in retirement savings has been a challenge for too long, but we’re finally seeing the tides turn—and it’s happening fast. Especially among younger generations, the momentum is undeniable. We’re at the beginning of something big, and the data backs it up.

In 2019 women had about 30% less saved by the time they retired compared to men. However, the tides are turning. Recent reports show a dramatic increase in women opening retirement accounts, with 48% more new women customers in 2023 than in 2019. Gen Z women, in particular, are making waves, with a 99% increase in new customers from this group alone. 

This surge is more than just numbers—it reflects a growing awareness and action among young women to take control of their financial futures. They’re not just saving; they’re investing, staying the course during market fluctuations, and modeling healthy financial behaviors that are setting them up for long-term success.

More women than ever are joining the retirement savings movement, with 68% now saving for retirement, up from 66% in 2019. And with a 21% year-over-year increase in women opening Roth IRA accounts in 2023, it’s clear that the commitment to long-term financial planning is stronger than ever.

What’s driving this progress? It’s a mix of better financial literacy, better access to retirement plans, and a proactive, take-charge attitude towards money. Women are not just participating—they’re leading. More than half of women who invest in the stock market report that they typically stick with their investments during market dips, compared to just 43% of men.

Employers and financial institutions are also playing a role in this positive trend. Companies are not only providing retirement plans but are also offering resources and support specifically designed to help women build financial confidence. This support is critical to not just catching up but leveling the playing field.

Employers can offer tailored retirement plans and financial wellness programs that address unique challenges women face, such as caregiving responsibilities, longer lifespans, and higher health care costs. By providing these resources, employers can help ensure that women are not just catching up but are on equal footing with their male peers in retirement savings.

The progress we’re seeing is just the beginning. While there is still work to be done, the strides made in recent years show that the gap is closing, and the future is looking brighter for women’s retirement savings. But let’s not stop here. Secure Financial Future is all about keeping this momentum going and advocating for policies that empower all savers, especially women, to achieve financial security.

So let’s keep this up— the future of women’s retirement savings has never looked brighter.