Newsletter

Stay up to date with the latest from MAKERS delivered straight to your inbox. Sign up for new stories from trailblazing women, a big dose of inspiration, and exclusive MAKERS content.

Newsletter Confirmation

Thank you for joining! Please check your inbox for our special welcome letter
with exclusive updates from MAKERS.

Millennial Women are Saving Half as Much as Men

According to a new survey by T. Rowe Price, millennial men and women are putting an average of 8 percent of their annual salaries in a 401(k). However, millennial women are only saving half as much as men when it comes to their retirement savings.

The survey reports that for women ages 18 to 33 participating in a 401(k), the median 401(k) balance is $11,000. Men are saving double that: their average median 401(k) balance is $22,000.

Women are less likely to save, and when they do save, they save less. Price's survey revealed that millennial women are contributing a median of 5 percent of their annual salaries to their 401(K) plans, versus 7 percent for millennial men.

It is also evident that work differences – such as pay and positions – between genders are among the main reasons millennial women are saving less. Fortune reported that the median personal income for millennial women is $48,000, while men are earning $63,000. 

"I can't say that we're surprised," said Anne Coveney, T. Rowe Price's senior manager of Retirement Thought Leadership, to Fortune. "I think it's pretty well established in this country that there is a pay gap. A key contributing factor is that women tend to work in different professions, so I think we're seeing some of that come through in our study."

Learn a great tip about saving from business news journalist and MAKER Maria Bartiromo by watching the video above.

NEXT: The Best and Worst States for Women's Careers »

Related Stories:
The Best and Worst States for Working Moms 
What's Holding Women Back from Succeeding in the Workplace?

Photo Credit: Shutterstock / Cheryl Savan