Survey Finds Men Saved Over Twice as Much Money as Women in 2022

What happened

Men saved an average of $7,007 and women saved an average of $3,146 in 2022, according to New York Life’s latest Wealth Watch survey. The average amount saved overall was $5,011.

Levels of financial stress and optimism also differed considerably by gender. When asked about the current state of their finances going into 2023:

• 37% of men were hopeful, compared to 28% of women
• 26% of men were stressed, compared to 39% of women
• 26% of men felt on track to meet their financial goals, compared to 17% of women
• 26% of men felt anxious, compared to 36% of women

So what

The amount of money a person can save is one of the most important factors in their overall financial health. Having more money in your bank accounts and retirement plans provides more security. Because women save less than half as much as men, it leads to higher stress levels and makes it much harder to reach financial goals.

There are a couple of likely reasons for this gender savings gap. The most significant is the gender pay gap. According to recent data on the average U.S. income, women earned 73% as much as men in 2021. Their median salary was $36,726, compared to $50,391 for men.

In addition, women are more likely to serve as caregivers to aging parents. This can lead to both stress and financial strain as they take on more expenses. "Of the 53 million Americans serving as caregivers, 61% of them are women as reported by AARP in 2020," said Suzanne Schmitt, Head of Financial Wellness at New York Life in the news release for the Wealth Watch survey.

Now what

The massive difference in savings by gender is unacceptable, and unfortunately, there's no simple solution. Solving it depends on getting rid of the gender pay gap, which is one of the reasons why the fight for equal pay is so important.

While eliminating the gender pay gap as a whole requires societal change, there are ways to fight for fair pay on an individual level. To avoid getting paid less because of your gender, make sure that you:

• Know your worth. Research salary data online for your position to see how your pay compares to the average.
• Discuss salaries with others, in particular male colleagues. This is another way to see if you're being appropriately compensated.
• Don't hesitate to ask for a raise or change jobs. When you provide value as an employee, you have every right to maximize your earnings.

If you're underpaid, increasing your income is one of the best steps you can take to improve your finances. However, to benefit the most, you also need to make a plan for that additional money. When you get a raise, decide how much of it you're going to put in savings accounts, how much you'll invest, and how much you'll use for guilt-free spending. That way, your higher salary goes to good use.