While older men have the largest 401(k) account balances and younger women have the smallest, young women are beginning to close this long-standing gender gap in 401(k) savings, according to Bank of America's 2023 Financial Life Benefits Impact Report.

The study revealed that the average 401(k) account balance among men is 50% greater ($89,000) than the account balances of women ($59,000), but for millennials, that gap has closed to only 23%. Baby boomer men have 87% more saved for retirement than female baby boomers, and Gen X men have 53% more saved than Gen X women, the report said.

"Women face several unique challenges when saving for retirement," said Lorna Sabbia, head of retirement and personal wealth solutions at Bank of America. "Between the gender pay gap and career disruptions from caregiving responsibilities, women often contribute less to their workplace plans and have fewer years to make contributions. However, one of the promising data points we found is that although men's average 401(k) account balances exceed women's by 50%, women in younger generations are working to close the gender savings gap. According to our data, there's only a 23% difference in account balances between millennial men and millennial women."