The retirement savings gap for women is real—and growing. While more women are taking control of their financial futures than ever before, they continue to face unique challenges that make saving for retirement more difficult and less predictable.
Understanding these challenges is the first step. The next is finding a smarter, more customized approach to retirement planning that accounts for the realities many women face.
What’s Behind the Retirement Savings Gap?
Women, on average, retire with significantly less saved than men. A variety of structural and personal factors contribute to this imbalance, and they begin accumulating early in a woman’s career.
One major driver is the gender pay gap. Women still earn roughly 82 cents for every dollar earned by men, which directly impacts how much they can contribute to retirement savings over time.
Add to that career interruptions, often due to caregiving for children, aging parents, or both. These breaks in employment frequently result in fewer years of saving, lower lifetime earnings, and lost opportunities for employer-sponsored retirement contributions.
Women are also more likely to work part-time or in roles without access to robust retirement benefits. This limits participation in traditional 401(k) plans and makes consistent saving more challenging.
Finally, women tend to live longer than men. That’s good news, but it also means they need their savings to last longer—often several years or even decades more.
Why Traditional Retirement Planning Falls Short for Women
Most retirement planning advice assumes a linear career path with continuous income, full-time work, and employer-sponsored retirement plans. For many women, that’s simply not the case.
Traditional 401(k)-centered strategies rely heavily on employer contributions and steady, long-term participation. When a woman steps out of the workforce or reduces her hours, that model quickly breaks down.
Many financial plans also fail to consider how women’s priorities may shift across life stages—from caregiving to healthcare to late-life independence. As a result, “one-size-fits-all” advice often leaves women underprepared and underserved.
Catch-Up Strategies That Actually Work
While the savings gap is significant, there are effective strategies to catch up and close it. These tools are especially powerful when tailored to the unique life patterns and goals of women.
Spousal IRAs allow non-working spouses to contribute to an IRA, creating opportunities to save during caregiving years. This is especially valuable when career interruptions limit access to workplace plans.
Roth IRAs provide tax-free income in retirement and can serve as a flexible savings vehicle for women who expect to be in a higher tax bracket later in life or want greater control over when and how they access their money.
Health Savings Accounts (HSAs) are another overlooked asset. Contributions are tax-deductible, growth is tax-free, and withdrawals for qualified medical expenses are untaxed—making them a powerful tool for women anticipating high healthcare costs in retirement.
Delaying Social Security is another strategic move. By waiting until age 70, women can significantly increase their monthly benefit, helping to create more secure income over a longer lifespan.
Proactive Steps to Build Confidence and Control
Closing the gap isn’t just about saving more—it’s about planning smarter.
Automating contributions can help make savings more consistent, especially during high-demand seasons of life. Even small, regular deposits build momentum.
Working with a financial planner who understands the nuances of retirement planning for women can provide valuable insight. Running income and longevity projections can help women understand how long their money may need to last and what adjustments can optimize their outcomes.
Most importantly, there’s a mindset shift that needs to happen. Instead of asking, “Am I saving enough?” women should begin asking, “Am I planning wisely for the life I want to lead?”
A Smarter Future for Women in Retirement
Women deserve more than generic financial advice. They need retirement plans that reflect their lived experiences, unique financial pressures, and long-term goals.
At MJT & Associates, we take a planning-first approach that starts with your story. Whether you're approaching retirement, navigating a career shift, or recovering financially after divorce, we’re here to help close the retirement savings gap with thoughtful, tailored strategies.
The traditional playbook may not have been written with women in mind—but that doesn’t mean you can’t write your own future.
