Surprise! American women are woefully underprepared financially for retirement than men, a study financed by ING Retirement in Windsor shows.
The survey underscores the huge wage gap between working American women and men.
According to the study, among those who have savings in or outside of an employer-sponsored retirement plan, men have substantially more saved than women, a striking $149,000, on average, compared to women, who averaged $108,000 in total savings.
For women with children at home, this retirement savings figure dropped even further to $88,000.
A key driver of total retirement savings is the percentage of salary that individuals contribute to their employer-sponsored retirement plan.
ING says its study found that more women (42 percent) than men (34 percent) contributed just one to five percent of their salary into their plans. Fewer women (25 percent) than men (33 percent) have a formal investment plan to reach their retirement goals.
In addition, well over half (56 percent) of women do not feel financially prepared for retirement, compared to only 42 percent of men.
Of course, ING Retirement is willing to help both sexes plan for their golden years.