43%: Men who are saving a minimum of 10% in their 401(k) plan
As the old saying goes, “They won’t ask for directions,” but more men than women will do what’s recommended when it comes to retirement savings. Some 43% of men are saving a minimum target of 10% in their 401(k) plan. That just edges out women, who save at a rate of 39%, according to a Wells Fargo news release. Those rates include the employer match, according to data compiled by Wells Fargo. The bank analyzed data from 4 million eligible employees for whom the bank provided with an employer-sponsored 401(k) plan in 2013.
The good news for women who did participate is that their portfolios were better diversified. According to Wells Fargo, some 70% met a minimum level of diversification in their 401(k) accounts versus 67% of men. As defined in the news release, this included at least two equities plus a fixed income fund and holding less than 20% in employer stock. That difference could have been because more women took help—74% had their money in managed investments, versus 71% of men.
Advisors can help by educating plan sponsors about the use of target date funds.