Retirement Planning for Women: 10 Reasons Why You Are Probably Behind and How to Catch Up

Statistically speaking, women lag behind men when it comes to being ready for retirement. Research consistently shows that women are less financially prepared. However, awareness is growing and some trends are slowly improving. The really good news? It is never too late for retirement planning for women.

The Research is Clear: Women Lag Behind Men in Retirement Planning

Despite decades of progress in the workplace and growing financial literacy among women, a persistent gap remains when it comes to retirement readiness. Study after study shows that women are significantly less prepared than men to retire comfortably — with smaller savings, lower Social Security benefits, and longer life expectancies that make their financial needs even greater. The causes are complex and deeply rooted in pay disparities, career interruptions, and caregiving responsibilities.

Here are a few examples:

Retirement Savings Gaps

• According to TIAA’s Retirement Readiness Report, women have about 30% less saved for retirement than men, on average.
• A Vanguard study found that across defined contribution plans (like 401(k)s), women’s median account balances were about two-thirds the size of men’s — largely due to lower earnings and fewer years contributing.

Confidence and Readiness

• The Transamerica Center for Retirement Studies (TCRS) report showed that only 12% of women say they are “very confident” in their ability to retire comfortably — compared to 22% of men.
• Women are more likely to expect to work longer and less likely to have a written financial plan.

Social Security Reliance

• Women rely more heavily on Social Security: Nearly half of retired women receive 50% or more of their income from it, compared to about a third of men (Social Security Administration).
• Yet they tend to receive lower monthly benefits, because of lower lifetime earnings and fewer full working years.

Retirement Planning for Women IS Improving

While the retirement gap between men and women persists, there are signs of meaningful progress.

According to Fidelity’s 2025 Financial Resolutions Study, women are feeling optimistic as they enter the new year, with 61% saying they will be better off financially in 2025 than they were in 2024.

Progress:

• Fidelity reports that 68% percent of women say they have a plan to reach their financial goals and 80% say they plan to build up their emergency savings. Looking to the future, women’s top financial resolutions for 2025 are to save more money (46%), pay down debt (41%), and spend less money (33%).
• Participation rates are rising: Women now participate in workplace retirement plans at similar or even slightly higher rates than men, according to a report from Fidelity.
• Younger women are starting to save earlier and are more likely to seek out financial education — a shift driven by platforms like Ellevest and other women-centered financial resources.
• Policy changes (e.g., SECURE Act 2.0) that expand access to part-time workers and automatic enrollment could help women, especially those with irregular work histories.

Retirement Planning for Women: 10 Reasons Why Women Trail Men In Retirement Preparedness and What to Do About It!

When it comes to retirement readiness, women are often playing financial catch-up — not because they’re less capable, but because the system hasn’t been built with their realities in mind. From earning less and living longer to taking on more caregiving responsibilities, women face a unique set of challenges that compound over time and leave many less financially prepared for retirement than men.

But knowledge is power — and action is even better. By understanding the specific hurdles women face and taking proactive steps to address them, you can reclaim control of your financial future. Below, we break down the key reasons for the gap — and, more importantly, what you can do to close it.

1. The Gender Pay Gap

Why it matters:
Women earn about 82 cents for every dollar earned by men, and the gap is wider for women of color according to reporting from the Census Bureau. Over a 40-year career, that can translate into hundreds of thousands less in lifetime earnings and retirement savings.

How to counteract it:

• Negotiate pay early and often. Learn negotiation tactics and benchmark salaries using resources like Glassdoor or Payscale.
• Max out retirement contributions when possible to offset lower earnings. Even small increases matter over time.
• Look for employers with strong benefits, like 401(k) matches, paid leave, and career advancement programs for women.

2. Career Interruptions for Childcare

Why it matters:
Many women take time out of the workforce or reduce their hours to care for children — often during prime earning years. This leads to lower lifetime earnings, reduced retirement contributions, and smaller Social Security benefits. According to the U.S. Department of Labor, 43% of women leave the workforce at some point after having children, and the financial impact can linger for decades.

How to counteract it:

• Plan for career breaks by saving aggressively during high-earning years.
• Maintain retirement contributions during caregiving years via a spousal IRA or part-time work with access to retirement plans.
• Use child care tax credits and dependent care FSA accounts to reduce financial strain.
• Stay connected professionally to ease re-entry later — even volunteering or consulting can help bridge gaps.

3. Career Interruptions for Elder Care

Why it matters:
As parents age, women disproportionately step in as caregivers. According to the AARP, 60% of unpaid family caregivers are women, and more than one in five caregivers reduce their work hours or quit altogether to provide support. These interruptions often occur later in life, just when women are trying to catch up on retirement savings.

How to counteract it:

• Start financial conversations early with aging parents — about care preferences, long-term care insurance, and financial resources.
• Explore caregiver support programs at work, such as paid leave or flexible schedules.
• Document your caregiving impact to help advocate for future job re-entry, resume continuity, or even Social Security caregiver credits (in certain state programs).
• Keep contributing to your own retirement, even in small amounts, to preserve long-term compounding.
• Explore additional tips for keeping your finances on track if you need to give care.

4. Women Have Longer Life Expectancies

Why it matters:
Women live about 5 years longer than men on average (81 vs. 76). This increases the odds of outliving savings — especially with rising healthcare costs.

How to counteract it:

• Use the Boldin Retirement Planner to model longer lifespans and create a plan for funding the extra years.
• Delay claiming Social Security to maximize monthly benefits.
• Plan for long-term care needs with insurance or dedicated savings accounts.
• Learn about the best life expectancy calculators.

5. Lower Financial Confidence

Why it matters:
Even when women score similarly on financial literacy tests, they are more likely to say they feel less confident making financial decisions, which may delay planning or investment.

How to counteract it:

• Invest in financial education. Read books, take courses, or follow women-focused financial communities.
  • Have you met Coach Nancy, Boldin’s head educator? We offer daily life classes and a wide variety of education that is available on our YouTube channel or in the Boldin Classroom, accessible after you loog into the Boldin Planner.
• Use tools that clarify your situation. Planning platforms like Boldin can demystify finances and reduce overwhelm. The number one thing we hear from users is that they feel more confident about their money with the software.
• Work with experts, even briefly, to build a plan or validate decisions. Did you know that Boldin offers:
  • Low cost coaching?: Meet one to one with a Boldin coach to ensure that your information is entered correctly and get insights into how to answer the financial questions you have using the software.
  • Fiducary financial advice: Collaborate with an advice-only, flat-fee CERTIFIED FINANCIAL PLANNER™ professional from Boldin Advisors.
• Talk to friends or start a personal finance book club or an investment club.  Research has suggested that peers can help each other save more and improve their financial lives.
• Get involved with managing your money.  If you are married, it is important that both spouses know how much the household will need for retirement. 

6. Greater Likelihood of Part-Time Work

Why it matters:
Nearly 26% of employed women work part-time, often without access to retirement benefits like 401(k)s or pensions.

How to counteract it:

• Open an IRA (traditional or Roth) to continue saving independently.
• Use a Solo 401(k) or SEP IRA if self-employed or freelancing.
• Automate savings to build consistency, even if contributions are small.

7. More Conservative Investing Preferences

Why it matters:
Women tend to invest less aggressively than men — often holding more cash or low-yield assets — which can result in lower long-term growth.

How to counteract it:

• Understand your risk tolerance vs. risk capacity. You may be able to afford more growth-oriented investments than you think.
• Use target-date funds or managed portfolios if you’re unsure how to allocate assets.
• Don’t sit in cash. Inflation erodes savings that aren’t growing.

8. Divorce and Widowhood Risk

Why it matters:
80% of women will be solely responsible for finances at some point, often due to divorce or widowhood. Many are unprepared, especially if a partner managed the money.

How to counteract it:

• Plan as if you will be the sole decision-maker — because odds are, you will. (Explore 17 tips for being a solo senior.)
• Get involved in financial decision-making now, not later.
• Know your accounts, passwords, and assets. Create a shared financial “cheat sheet.”

9. Less Likely to Have a Written Retirement Plan

Why it matters:

Having a written plan is one of the strongest predictors of financial success — it helps people stay on track, make better decisions, and follow through on savings and investment strategies. The lack of a plan often leads to missed opportunities for tax optimization, strategic investing, and long-term goal alignment.

• Only about 31% of women report having a written financial plan, compared to 44% of men.
• Women are less likely than men to report having specific retirement savings targets or long-term financial goals. For example, only 34% of women say they have a concrete retirement savings goal, compared to 49% of men.

How to counteract it:

• Write it down. Even a basic plan that outlines income, expenses, savings goals, and timelines can dramatically improve decision-making and financial clarity.
• Use digital tools. Software like the Boldin Retirement Planner makes planning easier and less intimidating by helping you model your own future and adapt to life changes.
• Set clear goals. Define not just “save more,” but how much, by when, and for what. This turns vague hopes into actionable plans.

10. Too Many Couples Don’t Plan Together

Why it matters:

• Only about 42% of couples say they jointly plan for retirement. That means the majority either don’t plan at all or plan separately often leaving one spouse being financially vulnerable if the other becomes ill or passes away.
• 1 in 5 couples disagree on when they will retire. Many have mismatched timelines, with 21% of couples having different expectations about retirement dates. Even more have different ideas about lifestyle and location for retirement.
• More than half of couples don’t agree on how much they’ll need to retire. In fact, 48% of couples report not being on the same page about how much to save, and among those within 10 years of retirement, 52% don’t agree on expected retirement income needs.
• Only 17% of couples are both confident in managing retirement finances. Often, one partner handles most financial decisions, leaving the other less engaged or informed.

How to counteract it:

It is vital for the success of both you and your spouse to get on the same page and inform each other about retirement plans, resources, goals, and more.

• Schedule regular planning conversations — treat them like life check-ins, not just number crunching. Here 10 essential planning conversations to have with your partner.
• Use joint planning tools that show how each partner’s decisions impact the shared future. Use the Boldin Retirement Planner to go through every aspect of your current resources and plans.
• Plan for both lifespans, not just one. Women especially may face 10–15 years alone in retirement.
• Document everything. Shared visibility into accounts, passwords, estate documents, and beneficiaries is crucial.

Updated: April 15, 2025