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May 11, 2012 at 09:23 AM
Women and young investors are saving more and retirement plan participants overall are borrowing less, MassMutual’s Retirement Services Division announced Tuesday. In an analysis of its defined-contribution participants, the company found female defined contribution participants increased their deferral rates at twice the level men did in the first quarter of 2012.
Average account balances rose for women too, increasing 7.93%, while average account balances for men increased 7.27%. The gap between women’s average account balance and men’s narrowed from 40.5% in late 2010 to 38.8%.
Women aren’t the only group to increase their savings. While Gen Y participants still have lower deferral rates than their older coworkers, they are increasing their savings at an accelerated rate. Participants under age 29 increased their savings level by 2.29%, compared with the 0.42% increase seen among participants over 60. The 40-49 age group also increased their savings by 0.57%. Furthermore, just 1.3% of participants overall decreased their savings during the first quarter and just 2.98% stopped making deferrals.
