Retirement is Different for Women
Women face unique financial challenges throughout their careers and lifetimes, which means retirement planning requires a more intentional, customized strategy. While every woman’s journey is different, there are several factors that consistently shape retirement outcomes, making proactive planning essential.
Longevity
One of the most fundamental factors in retirement planning is longevity. Women tend to live longer than men, which means your savings may need to support several additional years of income, healthcare costs, and long-term care. That’s why starting early makes such a meaningful difference. Even modest, consistent contributions (especially when paired with the power of compounding) can grow substantially over time and help build the long-term security you’ll need.
Wage Gap
Though we’ve seen progress towards narrowing the gender wage gap in the US, the historical effects of this are persistent. Because women, on average, earn less over their lifetimes, they often have fewer dollars available to save, even though their retirement needs are often higher. This gap can compound over time, affecting employer matches, Social Security benefits, and long-term investment growth. The earlier you build a strategy to offset these differences, the stronger your retirement foundation becomes.
Healthcare
Women are also likely to spend more on healthcare in retirement. Women typically live longer and face higher medical needs later in life, their lifetime healthcare expenses are often significantly higher than men’s. This includes rising Medicare premiums, supplemental coverage, prescription costs, and the potential need for long-term care. Building these expenses into your retirement plan early, through strategic saving, insurance planning, and smart investment decisions, helps ensure you’re protected and prepared for the years ahead.