A new survey of participants in defined contribution plans administered MassMutual Financial Group shows that women increased their deferral rates at twice the level of men in the first quarter of this year.
MassMutual, Springfield, Mass., published this finding in a report based on data gathered from the company’s Retirement Services Division. The unit serves approximately 1.6 million defined contribution plan participants nationwide.
For the quarter ended March 31, the survey shows that women increased their deferral rates in MassMutual-administered defined contribution plans by an average of four basis points. This compares with an average increase of two basis points among men.
One in 25 (4.22%) plan participants increased their deferral percentage during the first quarter, marking the second highest percentage in a single quarter since MassMutual began deferral rates in 2007, the survey says.
What Your Peers Are Reading
The survey notes also that, as expected, average deferral rates for the youngest savers (3.58%) are lower than older participants (7.18%); however, the savings rates for Gen Y are increasing at an accelerated rate.
Participants age 29 and under increased their savings levels by 2.29% vs. participants age 60 and over, who increased by only 0.42%. Participants aged 40 - 49 had the second highest savings level increase of 0.57% to an average deferral rate of 5.27%.