Connections for Success



Gender Gaps in Retirement Savings
Stephanie Zaleski-Braatz

Although women have a longer lifespan than men, they tend to save less for retirement. Based on a recent study from the Center for Retirement Research, an aggressive educational program can help narrow the gap in retirement savings.

The facts

In many employment settings, women tend to accumulate less retirement savings than men. This may be due to the fact that women are paid less than men, choose to work part-time or take more time off to care for children and elders. Women are also known to take less financial risk, therefore earning lower returns on investments.

The study

The study focused on the impact of an initiative by the state of Wisconsin to close a retirement savings gender gap among state employees. Although Wisconsin state employees were also covered by defined benefit plans, increasing women’s contributions to a state-sponsored supplemental retirement plan was considered essential to their retirement security.

The study’s authors reported that, while financial education outside of the workplace typically does not correlate with increases in retirement savings, workplace-based education efforts generally are effective. The Wisconsin initiative “delivered information, motivation, and challenges through multiple media over a span of a few months.” For example, women received monthly emails with messages such as “women are twice as likely as men to live in poverty during retirement,” with links to online educational resources and financial planning tools. Such messages apparently hit home.

Women were also invited to attend women-only lunchtime education sessions, and the resulting participation rates were high. Rather than lectures, the program format emphasized peer interaction to overcome what the study’s authors call “the ostrich effect”— a reluctance of people to discuss personal finance matters, especially if they are already worried about their financial health. Program content directed participants to take specific actions to improve their financial outlook, particularly increasing their participation in the supplemental retirement savings plan.

The results

According to the study, “differences between men and women in financial knowledge and motivation contribute to gender gaps in retirement savings.” However, the study concluded that providing opportunities for employees to take part in live and digital educational events can increase knowledge and motivate participants.

Many retirement plan websites provide articles, seminars, webcasts and other opportunities to help navigate financial challenges. This can be a good place to start learning how to take control of your retirement plan.

For more information, contact Stephanie Zaleski at [email protected] or 312.670.7444.  Visit to learn more about our Employee Benefit Plans Services.

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