Wells Fargo Study: Millennial Women Are Not Saving

7658159678_0041ab3d5e_bFindings from the 2014 Wells Fargo Millennial Study (PDF)*, conducted online by Harris Poll on behalf of Wells Fargo, has found that only 50 percent of millennial women are saving, a percentage that is lower than millennial men (61 percent).  This difference in saving rates may hinge on the fact that the median annual household income reported by millennial men is $77,000 versus $56,000 for women. For college-educated millennials, median annual household income is reported to be $83,000 for men and $63,000 for women. About half of all millennials report they are “satisfied” with their savings at this point in their lives, but the gender discrepancy is pronounced, with 58 percent of men feeling satisfied, versus 41 percent of women.
“The silver lining of the recession that started over five years ago is that a majority of millennials get that saving is a necessity and even equate it with ‘surviving’ tough times. But millennial women are starting out their working lives making far less than men and, as a consequence, are saving less and feeling less contentment at the start of their working lives,” said Karen Wimbish, director of Retail Retirement at Wells Fargo. “Millennial men are earning more, saving greater percentages of their income and report having more accumulated assets. Women are lagging behind men in their savings efforts, and this could explain why they feel less satisfied with their overall financial situation.”
Another area of concern for millennial women?  Lack of confidence in the stock market. Half of millennial women (49%)  and 69 percent of millennial men agree that the stock market is the best place to invest for retirement while 69 percent of millennial.  “I was pleased to see that millennials are warming up to the stock market, yet concerned to see the huge difference in sentiment among women, who should be on par with men at this stage,” said Wimbish. “Still there’s about a third who are underinvested in stocks or all in cash, and a quarter who aren’t even sure what they’re invested in. Optimism doesn’t always translate into investing in the stock market for retirement.”
Click here for more information about this study.
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