2024 How America Saves is out, featuring Vanguard 401(k) plan data. There is lots of good news, but the story I want to highlight is, #women are CRUSHING it. Four examples: 1. At every income level, women are more likely to participate in 401(k) plans than men (Fig 28). Where they make the difference is actually in plans without automatic enrollment: when men and women have to make an active choice to enroll in their retirement plan, women are more likely than men to do so (Fig 30). That's a clear articulation of a financial goal. 2. Women save a higher share of their income for retirement than men at all income levels except those earning less than $30K (Fig 38). That's discipline. 3. Women are more likely to use professionally managed allocations like a target date fund (Fig 77). That’s a really simple and smart way to achieve a balanced investment allocation. 4. Women are less likely to trade in their accounts (Fig 100). That contains costs. Vanguard touts four principles of investing: goals, discipline, balance, and cost. Women are exhibiting all of them. https://lnkd.in/eHa2XbpV Amazing work by Jeff Clark, David Stinnett and the entire team for yet another year of How America Saves. #401k, #retirement, #women, #saving
So great to see. Hopefully they’re taking the appropriate amount of risk too…and feeling more confident in their abilities to manage their money!
Frank Roth
1w
Great insight thx for sharing!
Great data points to pull out Fiona. And so true!
Great post! Thank you Fiona …
Wow - this is incredible!
Yes! Greta data to highlight! Thanks Fiona
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3wFurther proof that women are, in fact, great with money when they know what to do.