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Why Retirement Planning Feels Different for Women—and What You Can Do About It Thumbnail

Why Retirement Planning Feels Different for Women—and What You Can Do About It

Planning for retirement isn’t one-size-fits-all. And for many women, the path can feel especially uncertain. Longer life expectancies, time spent caregiving, and the gender pay gap all add up to unique financial challenges.

But here’s the good news: With the right plan in place, you can build the kind of retirement that gives you peace of mind.

Why Retirement Feels Different for Women

1. Living Longer Means Saving More: On average, women live about five years longer than men. That’s five more years of healthcare costs, housing, and general living expenses. Planning for a longer retirement means your money needs to last longer too.

2. Taking Time Off to Care for Others: Whether it’s raising kids or helping aging parents, many women step away from their careers to care for loved ones. That often means lower lifetime earnings and fewer opportunities to contribute to retirement accounts.

3. Earning Less Over Time: Even now, women tend to earn less than men over the course of their careers. That wage gap adds up—especially when it comes to saving and investing for the future.

4. Navigating Retirement Solo: Many women spend part of retirement alone, whether due to divorce or outliving a partner. That can make financial decision-making feel even more overwhelming.

5 Key Steps to Build a More Secure Retirement

1. Have a Plan: A 2020 study found that 51% of unmarried women haven’t saved for retirement, compared to just 24% of married women. And since retirement could last 20–30 years, the stakes are high. The Department of Labor suggests most retirees need 70% to 90% of their pre-retirement income to maintain their lifestyle. Start with the basics: What are your expected expenses? What income sources will you have? How much more do you need to save?

2. Prepare for Long-Term Care: There’s a nearly 70% chance you’ll need some type of long-term care after age 65. Even if you have support from family, long-term care services can be expensive. Looking into options like long-term care insurance or setting aside funds for assisted living can reduce stress later on.

3. Consider Delaying Social Security Social Security: is a key income source for many women—especially those who are single or widowed. While you can start benefits at age 62, waiting until full retirement age (or even up to age 70) can increase your monthly payments for life. If you can afford to delay, it’s often worth it.

4. Build a Strong Support Network: Retirement isn’t just a financial shift—it’s a lifestyle one, too. Studies show that strong social connections improve health and well-being. Whether it’s friends, volunteer groups, or community events, having a support system matters.

5. Plan for Widowhood or Retirement: Alone The median age of widowhood in the U.S. is just 59, and half of all widows over 65 outlive their husbands by 15 years. That’s a long time to manage finances solo. Planning ahead—by organizing key documents, reviewing insurance, and having a clear picture of your savings—can make a tough transition a little easier.

Final Thoughts

No matter where you’re starting from, it’s never too early—or too late—to plan for the retirement you want. Women face unique challenges, but they also have the power to take action. Whether you're saving on your own, planning with a partner, or preparing for the unexpected, a personalized retirement plan can help you move forward with confidence.

Working with a financial advisor who understands your goals can make the process easier and help you avoid common mistakes.

Sources:

  • OECD – Average Effective Age of Retirement
  • EBRI 2020 Retirement Confidence Survey
  • Administration for Community Living – Long-Term Care Statistics
  • Social Security Administration – Retirement Benefits
  • Social Security – Early Retirement Reductions
  • Harvard Health – The Health Benefits of Strong Relationships
  • Statista – Life Expectancy in North America
  • Transamerica Center for Retirement Studies – Women and Retirement
  • Family Caregiver Alliance – Women and Caregiving
  • TheStreet – Retirement Planning for Women

This content is developed from sources believed to be providing accurate information and is provided by Twenty Over Ten. It may not be used for the purpose of avoiding federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed are for general information and should not be considered a solicitation for securities transactions.