Vanguard’s new 2026 How America Saves report shows women are better at saving for retirement but still have less money in their retirement accounts. The report studied nearly 5 million retirement savers across more than 1,300 workplace retirement plans in the US.
In 2025, the average 401(k) balance for men was $194,597. The average 401(k) balance for women was $146,476, much lower than men’s average. Even though women have lower account balances, they actually show better retirement saving habits than men. Women are more likely to join their company’s retirement plan when they earn a similar income as men, said Jeff Clark, Head of Defined Contribution Research at Vanguard.
Women save more for retirement
Women also save a slightly higher percentage of their salary into retirement accounts than men at similar income levels. Women usually invest more consistently and avoid making frequent changes to their investments.
Women are more likely to use professionally managed investment options like target-date funds, which are designed for long-term retirement planning. According to Vanguard, these investing habits are linked to better long-term financial outcomes.
Why women have lower 401(k) balances
Experts say the main reason women have lower retirement balances is not because they save less, but because they usually earn less money, as per CNBC. According to the US Labor Department, women working full-time earn about 81% of what men earn.
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Lower salaries mean women have less money available to contribute to retirement accounts. Another major reason is that many women take career breaks or work part-time to care for children, elderly parents or sick family members. Patti Black, Certified Financial Planner at Savant Wealth Management said women often stop working or reduce work hours because of caregiving responsibilities.
Caregiving affects retirement savings
A 2025 report found that most caregivers are women. Taking time away from work means women may miss retirement contributions during those years. They may also lose out on employer matching contributions, which can reduce long-term retirement savings.
Experts also pointed to the “motherhood penalty,” where women’s earnings often fall after becoming mothers. However, Vanguard said the retirement savings gap becomes much smaller when men and women with similar incomes are compared. Among people earning between $30,000 and $149,999, women’s average retirement balances were within 10% of men’s balances, as per Vanguard report.
Overall, the report suggests that women generally make smarter retirement saving and investing decisions, but lower pay and caregiving responsibilities continue to reduce the total amount they are able to build for retirement.
