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BOA shows gender gap

Bank of America released its 2023 Financial Life Benefits Impact Report.

The study showed that the average 401(k) account balance among men is 50% greater than women’s overall ($89,000 vs. $59,000).

However, the gender gap is closing among younger generations. Baby Boomer (ages 58-76) and Gen X (ages 43-57) men have significantly greater account balances than women in their generations (87% vs. 53%, respectively). However, the gap between Millennial (ages 28-42) men and women is only 23%.

In a positive note to the industry, Gen X participants continue to have the highest 401(k) participation rate (65%) across generations, followed by 57% of Baby Boomers and 55% of Millennials. This is fantastic because for years, people were moaning that the industry will suffer when Baby Boomers retire because the younger generations won’t defer.

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