

Retirement poses significant financial challenges for women, rooted in several systemic and societal factors. Despite making strides in the workforce, women often find themselves at a disadvantage when it comes to retirement savings.
Income Disparity and Longevity
Women generally earn less than men throughout their careers, contributing to smaller retirement savings. According to the 2023 Goldman Sachs survey, 40% of retired women have $100,000 or less in savings; compared to 33% of retired men. Additionally, women live longer than men, which necessitates a larger retirement fund to cover additional years of living and long-term care expenses. This longevity means women must stretch their savings further – often with fewer financial resources.
Career Interruptions for Caregiving
Many women take time off work to care for children or aging parents, significantly impacting their ability to save for retirement. 36% of retired women had to take time off (usually during their prime earning years) for caregiving, compared to just 13% of men. These career breaks not only reduce immediate income, but also limit long-term savings and pension benefits.
Lower Social Security Benefits
Since Social Security benefits are based on lifetime earnings, women’s lower average incomes, and time out of the workforce, result in smaller benefits. The Goldman Sachs survey found 46% of retired women were living on half, or less, of the income they earned during their careers. This reduction can make a significant difference in their overall retirement income, further straining their financial resources.
Steps to Mitigate the Challenges
Addressing these challenges requires a multi-faceted approach:
- Advocate for Equal Pay: Ensuring women receive equal pay for equal work is fundamental.
- Promote Financial Literacy: Educating women about personal finance and retirement planning can empower them to make informed decisions.
- Support Caregivers: Policies that provide financial support and job protection for caregivers can help women maintain their career trajectories and retirement savings.
- Encourage Retirement Savings: Employers and policymakers should create and promote retirement savings plans tailored to meet the unique needs of women.
By understanding and addressing these challenges through public policy and private sector supports, we can work towards a more equitable retirement landscape that supports and prioritizes the unique financial challenges women face in the workforce, retirement, and beyond.