Bank of America released its 2023 Financial Life Benefits Impact Report.
The study showed that the average 401(k) account balance among men is 50% greater than women’s overall ($89,000 vs. $59,000).
However, the gender gap is closing among younger generations. Baby Boomer (ages 58-76) and Gen X (ages 43-57) men have significantly greater account balances than women in their generations (87% vs. 53%, respectively). However, the gap between Millennial (ages 28-42) men and women is only 23%.
In a positive note to the industry, Gen X participants continue to have the highest 401(k) participation rate (65%) across generations, followed by 57% of Baby Boomers and 55% of Millennials. This is fantastic because for years, people were moaning that the industry will suffer when Baby Boomers retire because the younger generations won’t defer.