Women Making Retirement Savings Progress, Fidelity Finds

Women are continuing to make strides in several financial areas, saving for retirement at higher rates than four years ago and planning to use their money to pay down debt in the next six months, new data shows.

The retirement savings gap between genders has also narrowed, according to Fidelity Investments’ October 2023 women’s study. In 2023, 68% of women are saving for retirement, compared with 77% of men; in 2019, 66% of women were saving for retirement, compared with 82% of men’s, Fidelity data shows.

“Women are on a strong economic trajectory and are increasingly looking for more opportunities and help, to make the most of their money,” stated Lorna Kapusta, head of women and engagement at Fidelity, in a release accompanying the study.

For women retirement savers, several factors can complicate financial and retirement planning, creating different challenges. Historically, women have lived longer and saved less, due to lower earnings and a higher rate of leaving the workforce for caregiving responsibilities.

Fidelity’s study showed that in the next six months, women surveyed said they plan to take steps to bolster their finances, including:

• Pay down debt: 33%;
• Create or update a budget: 24%;
• Find a second job or side hustle: 22%; and
• Start or add an emergency fund: 22%.

The data showed that 60% of women invest in the stock market, with women in Generation Z leading the way at 71%, followed by 63% of Millennials, 55% of Generation X and 67% of Baby Boomers, Fidelity finds.

Women who invest in the stock market tend to maintain a more even keel through periods of volatility than men, who were more likely to divest or to invest more:

-Source Fidelity Investments

However, 43% of women say they are unsure how to face future dips in the market, compared with 62% of men, the survey found.  

In the past year, women responded to economic uncertainty by taking the following actions:

• 34% started holding greater amounts in cash liquidity and/or keeping more savings in cash;
• 22% delayed leaving a job or switching careers;
• 15% moved cash savings into a money market fund that is earning interest; and
• 15% moved to more conservative investments and or savings.

Fidelity’s October 20023 women’s study found that almost one-quarter of women have a formal written financial plan.

Women have also made several long-term financial strides in the last five years, according to additional data included in the press release. Another Fidelity survey found that in 2022 women in the survey reported carrying less credit card and student loan debt than they had in 2017. More women reported having an “excellent” credit score and a larger share reported having six months of expenses saved for an emergency, according to the Fidelity Investments Total Well Being Study 2022.

Data for the October 2023 women’s study was sourced from a survey sample of 2,000 adults 18 and older, including 994 men and 1,002 women. The survey was conducted July 21 through 26 by Big Village, which is not affiliated with Fidelity Investments.