NCPA - National Center for Policy Analysis


July 7, 2008

A new study by Hewitt Associates shows that both sexes are not saving enough for retirement, although women save even less than men, says 

The study looked at the projected retirement levels of nearly 2 million current workers of varying ages at 72 large U.S. companies and used actual employee balances.

Among the findings:

  • Less than one in five workers will be able to maintain their lifestyle upon retirement.
  • More than 1.2 million employees (67 percent) are expected to have less than 80 percent of what they would need to maintain their lifestyle at retirement.
  • On average, employees are projected to replace just 85 percent of their income in retirement, compared to the 126 percent they would need when factoring in inflation, longer life spans and medical costs.
  • Those who don't contribute to 401(K) plans face an even bleaker future; these workers will likely only be able to provide less than 40 percent of their projected needs.


  • While the same percentage of men and women contributed to retirement plans, women had generally saved 8 percent less than men.
  • The biggest reason for this gap was a disparity in pay; women earned an average of $57,000 while men earned an average of $84,000.

Source: "Women Saving Less Than Men For Retirement,", July 1, 2008.

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