Women are contributing less to their employer-sponsored defined contribution (DC) plans than their male counterparts, just 6.9 percent of their pay compared to 7.6 percent for men, according to a new report from Aon Hewitt (Aon).
The difference, though not monumental, is not marginal, either. In addition to devoting 0.7 percent less of their pay to their DC plans, the report found nearly one-third of women contribute below the company match threshold compared to one-quarter of men. These two factors render women, across all salary ranges, with significantly less in their retirement plan balances than men — $59,300 for women, $100,000 for men.
The findings become even more unsettling considering women usually have longer life expectancies (therefore requiring more funds) and many taking time away from their careers to have children.