Retirement planning for women involves addressing unique financial challenges to ensure long-term security. Here’s a comprehensive guide based on the latest research and expert recommendations:

Key Challenges Women Face in Retirement Planning

  1. Gender Pay Gap and Lower Lifetime Earnings

    • Women earn ~83 cents for every dollar men earn, with even wider gaps for women of color (e.g., Latina women lose $1.2M over a 40-year career) 912. This reduces savings capacity and Social Security benefits, which are based on earnings.

  2. Career Interruptions for Caregiving

    • Women are more likely to take breaks for childcare or eldercare, missing years of retirement contributions and career advancement. Caregiving costs women ~$300,000 in lost lifetime earnings.

  3. Longer Life Expectancy

    • Women live 5–6 years longer than men, requiring savings to last longer and cover higher healthcare costs (e.g., $155K vs. $134K for men).

  4. Lower Retirement Savings

    • Women have 30% less saved than men, with median savings of $50K vs. $157K for men aged 55–75.

  5. Social Security Gaps

    • Fewer working years (due to caregiving) may result in lower benefits. Spousal or survivor benefits can help, but planning is critica.

  6. Tax and Widowhood Risks

    • Widows face higher taxes when filing singly, and divorcees experience a 45% drop in living standards vs. 21% for men.

Strategies for a Secure Retirement

  1. Start Early and Maximize Savings

    • Use compound growth by investing early. Aim to save 10–15% of income, prioritizing employer-matched 401(k)s and IRAs.

    • Catch-up contributions: If 50+, add $7,500 to 401(k)s or $1,000 to IRAs in 2025.

  2. Address Career Breaks

    • Use spousal IRAs if non-working.

    • Consider annuities for guaranteed lifetime income.

  3. Optimize Social Security

    • Delay claiming until age 70 to increase benefits by 8% annually.

    • Explore spousal/survivor benefits if eligible.

  4. Plan for Healthcare Costs

    • Fund HSAs for tax-free medical expenses.

    • Consider long-term care insurance.

  5. Diversify Investments

    • Women often outperform men in investing due to patience and lower trading frequency. Use low-cost index funds/ETFs.

  6. Estate and Tax Planning

    • Update beneficiaries, create wills/trusts, and name powers of attorney.

    • Plan for tax changes after widowhood.

  7. Seek Professional Advice

    • 40% of women with advisors feel “very prepared” vs. 27% without.

Actionable Tips

  • Negotiate salaries to reduce pay gaps.

  • Automate savings and track accounts (e.g., use tools like Fidelity’s Retirement Score).

  • Review plans annually, especially after life changes.

For deeper insights, explore resources like National Bank’s retirement guide or Pacific Life’s annuity strategies.