According to Vanguard's 2026 How America Saves report, the average 401(k) balance for men in 2025 was $194,597, while women averaged $146,476. This discrepancy exists despite women saving more of their paychecks and participating in retirement plans at higher rates, particularly at similar income levels.
Jeff Clark, head of defined contribution research at Vanguard, noted that women tend to invest more consistently and utilize professionally managed options, which are associated with better long-term outcomes. However, factors such as lower earnings—women earn about 81% of what men make—and caregiving responsibilities contribute to the lower balances.
Research from Fidelity Investments indicates that women's investment portfolios outperform men's by an average of 0.4%. The Vanguard report also reveals that among earners between $30,000 and $149,999, women's account balances are within 10% of men's, and in the lowest income bracket, women actually have higher balances.
Both genders have similar asset allocations, but some women may hold excessive cash in regular bank accounts instead of investing it for retirement. Financial advisor Patti Black suggests that while having an emergency fund is important, it should not be excessively large, as this could hinder retirement savings growth