The gender pay gap may be a persisting problem, but there’s at least one piece of good news. According to figures Fidelity Investment shared with the New York Times, women are becoming 401(k) millionaires earlier in life than men. For women, it’s happening around the age of 58.5, while for men, it’s happening closer to 59.3 years old. Furthermore, the number of women who’ve become 401(k) millionaires has doubled in the last 12 years, from 10% to 12%. It’s long been thought that ladies don’t know how to properly handle their money. The growing number of women becoming millionaires says otherwise, though. These findings are based on research Fidelity started back in 2005.
And the 401(k)s are largely responsible for this promising step forward. If you’re not yet familiar, a 401(k) lets an employee take money from their paycheck pre-tax and put it toward a retirement plan. Fidelity also found that women are a little more active when it comes to investing in stocks: while 76% of men invested, 77% of women did.
Although women, on average, earn less than men, they are contributing more of their pay to their 401(k). This could help explain our success with it. Use your own 401(k) wisely! Up your contributions, and allocate at least enough to get the employer match. This will maximize your earnings.
Way to go, ladies!