A new study by Vanguard finds that, while women tend to invest a higher percentage of their income in their 401(k), their male counterparts often end up with much higher balances come retirement. In fact, the average 401(k) balance for the women surveyed was $78,000 compared to an average balance of $121,000 for men.

The analysis found that women save more of their paychecks and are more likely to participate in employer-sponsored retirement plans. How, then, are men entering retirement with such significantly higher balances?

Saving for retirement: The wage gap

The wage gap plays a significant role, confirms Nicole Mayer AIF® CDFA™ of RPG- Life Transition Specialists. “Women still earn less than 80 cents to every dollar a man earns,” she says. “But they also tend to take more time off work to raise their children and care for elderly parents.” According to the study, men work as many as 12 years longer, on average, than women.

Nicole Mayer encourages women to use this survey as an opportunity to renegotiate their salaries. “Men tend to be more ruthless negotiators when it comes to salary,” says Mayer. “I advise women to reflect on whether their current salary is in line with their contributions and, if need be, have that tough conversation with their supervisors. If you make more, you can save more. Period.”

About RPG-Life Transition Specialists (RPG) Located in Riverwoods, Illinois, RPG-Life Transition Specialists (RPG) is a financial planning firm committed to tailoring the retirement process for each individual client and providing financial education programs for corporations.  With a 95% client retention rate over the course of 16 years, the experienced staff of financial professionals takes time to counsel each prospect and deliver a plan designed to meet each individual’s specific needs.  They have been featured in esteem publications like the Wall Street Journal and Crain’s Chicago Business.  Joshua Kadish, AIF, RFC of RPG-Life Transition Specialists co-hosts the radio show “America’s Wealth Management Radio Show” with Dean Barber on 890 AM WLS and has been named a 2012 & 2013 Five Star Wealth Manager. RPG-Life Transition Specialists is located at 2610 Lake Cook Road, Suite 250, in Riverwoods, Illinois.

New Study: Women Save More, Have Less for Retirement