Women's Retirement Participation Drops, Men's Stays the Same

• Various workplaces and households increasingly raise concerns about retirement readiness
• Many full-time workers remain uncertain about being financially ready for retirement
• New data shows widening differences in retirement readiness, especially affecting women

As the importance of being financially ready for retirement continues to be emphasized throughout society, so too does the collective lack of Readiness by Most Full-Time Workers.

Based on an analysis of approximately 1.2 Million Employee Records between 2021-2024, it became apparent that there are Large Gaps in Readiness among Certain Categories of Workers, particularly Women.

This analysis, conducted by Dayforce, provides an overview of the relationship between employer-sponsored retirement plans and Workforce Readiness to retire.

Employers found 78.7 percent of the full-time workforce enrolled in some type of retirement plan (employer-sponsored or individual) as of 2024, a slight increase from the 78 percent enrolled in 2021.

Average annual contributions also increased 13 percent, from $9,488 in 2021, to $9,488 in 2024, and were due to both employer and employee contributions. However, compared to the recommended savings rates of 12 - 15 percent of Gross Salary, the average worker's savings was 9.3 percent.

Due to an overall increase in participation rates, however, we see a reduction in participation rates for women. The Participation Rate for women increased from 77 percent in 2021, to 76 percent in 2021, as was experienced by all men (stay near 80 percent).

Even amongst those actively participating in a Plan, Average Contributions by women were $8,096 as compared to Men, at $10,974, which is also reflected in the contributions received from Employers and Employees.