Women have saved one-third of what men have for retirement. Here’s why it matters—and exactly what to do about it in 2026.
Let’s start with a number that should make you pause: according to Prudential Financial research, women aged 55 to 75 have saved a median of just $50,000 for retirement. Men the same age? $157,000.
That’s not a typo. Women have saved one-third of what men have.
And here’s the kicker: women actually need more saved, not less. According to the Social Security Administration, women reaching age 65 in 2026 are expected to live an average of 21.1 additional years—2.6 years longer than men. Plus, 85% of women will need long-term care for an average of 2.5 years, costing $2,500-$12,000 monthly. With inflation, that could mean needing over $500,000 just for care.
The math is brutal: women earn less over their lifetimes, live longer, and face higher healthcare costs. The result? A retirement crisis that’s disproportionately affecting women—and one that most of us aren’t adequately prepared for.
But knowledge is power. Here’s what you need to know to close the gap.
Understanding the Problem: Why Women Save Less
The retirement savings gap isn’t just about women being “bad with money.” It’s structural, and it’s real. Here’s what’s happening:
1. The Pay Gap Compounds Over Time
Women earn approximately 84 cents for every dollar men earn (as of 2024). Over a 40-year career, that adds up to roughly $400,000 in lost earnings. Less income means less ability to save.
The gap is even worse for women of color: Hispanic women earn 58.4 cents and Black women earn 63.1 cents compared to white men’s earnings.
2. Career Interruptions for Caregiving
Women are significantly more likely to take time off for caregiving—whether for children, aging parents, or both. According to Morgan Stanley research, these career pauses reduce total funds saved in employer-sponsored plans and mean fewer years of compound growth.
By the time women retire, research shows they have about 30% less saved than men.
3. The Confidence Gap in Investing
Here’s something surprising: according to a Bankrate survey, 28% of working women didn’t contribute anything to retirement savings in 2024-2025, compared to 18% of men. For Black and Hispanic women, that number jumps to 33%.
And a 2024 SoFi survey found that 64% of women have never invested.
The irony? Women are actually better long-term investors than men. Fidelity research shows women tend to hold onto investments longer, make fewer impulsive decisions, and take more calculated risks. But a lack of confidence often prevents women from starting at all.
“Women want to understand the risk they’re taking,” explains Cady North, founder of North Financial Advisors. “They end up not making any action, which can be really detrimental versus making mistakes along the way.”
4. Keeping Money in Cash Instead of Investing
Women are more likely to keep extra money in cash instead of investing it. While cash feels safe, it’s actually losing value to inflation—and missing out on decades of potential growth.
5. Putting Others First
More than 1 in 5 women say they have little or no involvement in decisions about retirement and long-term financial planning, often deferring to partners. Women are also more likely to prioritize saving for children’s college over their own retirement.
But here’s the hard truth: you can take out loans for college. You cannot take out loans for retirement.
Why This Matters More Than You Think
According to T. Rowe Price research, 60% of women in retirement are divorced, widowed, or never married, compared to just 35% of men.
Translation: most women will be financially responsible for themselves in retirement, whether they planned for it or not.
And life is long. The average 65-year-old woman today will live to 86. Many will live into their 90s. That’s potentially 20-30 years of retirement to fund.
A 2025 Bankrate survey found that 62% of working women feel behind where they should be with retirement savings (compared to 55% of men). That anxiety is justified—but it’s also actionable.
How Much Do You Actually Need?
A common rule of thumb from T. Rowe Price: aim to have saved 11 times your pre-retirement salary by age 65.
So if you’re earning $100,000 before retirement, you’d want $1.1 million saved.
That might sound impossible, but remember: this includes decades of compound growth. A 30-year-old saving $500/month with a 7% average annual return would have approximately $600,000 by age 65. Start at 25, and that same $500/month becomes $850,000.
The key insight: time is your most valuable asset. The earlier you start, the less you need to contribute each month.
8 Strategies to Close Your Retirement Gap
1. Start Now (Even If It’s Small)
Don’t let perfect be the enemy of good. According to financial advisors, women often have an “all-or-nothing” perspective with investing. But you don’t need to be an expert to get started.
Action step: If you’re not contributing to retirement at all, start with 1% of your salary. Just 1%. You won’t notice it in your paycheck, but it gets you in the game. Then increase by 1% every year.
2. Get the Employer Match (It’s Free Money)
If your employer offers a 401(k) match and you’re not taking it, you’re literally leaving money on the table. This is a 100% return on investment—instantly.
Example: If your employer matches 50% of contributions up to 6% of your salary, and you earn $80,000:
- You contribute: $4,800/year (6% of $80,000)
- Employer adds: $2,400/year
- Total: $7,200/year going into your retirement
Over 30 years with a 7% return, that $2,400 annual employer match alone becomes approximately $245,000. Don’t leave it behind.
3. Automate Everything
Set up automatic contributions from your paycheck to your 401(k)/403(b) and auto-escalation (where your contribution percentage increases 1-2% annually). Many plans offer this feature—just enroll.
You can also automate contributions to an IRA. Money that goes directly from your paycheck or checking account into retirement is money you never “see” and won’t miss.
4. Maximize Contribution Limits (2026 Numbers)
For 2026, contribution limits are:
- 401(k)/403(b)/457 plans: $24,500 (up from $23,500 in 2025)
- IRA (Traditional or Roth): $7,500 (up from $7,000 in 2025)
Catch-up contributions (age 50+):
- 401(k) plans: Additional $8,000 (total: $32,500)
- IRA: Additional $1,100 (total: $8,600)
- “Super” catch-up (ages 60-63): Additional $11,250 instead of $8,000
Important 2026 change for high earners: If you earned more than $150,000 in 2025, any catch-up contributions you make in 2026 must go into the Roth side of your 401(k), not pre-tax. This removes the upfront tax deduction but provides tax-free growth and withdrawals in retirement.
5. Start Investing (Not Just Saving)
Money sitting in a savings account earning 0.5% interest is losing value to inflation (typically 2-3% annually). Invested money, on the other hand, has historically averaged 7-10% annual returns over long periods.
If you’re nervous about investing:
- Start with target-date funds (e.g., “Target 2055 Fund”)—they automatically adjust your investment mix as you age
- Many workplace plans auto-enroll you in age-appropriate investments
- Set aside an hour a week for financial education—learn one new thing at a time
- Remember: you’re a better long-term investor than you think
6. Open an IRA (Even If You Have a 401(k))
You can contribute to both a workplace retirement plan and an IRA. Options:
- Traditional IRA: Contributions may be tax-deductible now; you pay taxes on withdrawals in retirement
- Roth IRA: No tax deduction now, but withdrawals in retirement are tax-free (including all growth)
Roth IRA benefits for women: Since you’re likely to live longer and potentially be in a higher tax bracket in retirement (with required withdrawals from traditional accounts), having tax-free Roth money can be powerful. Plus, Roth IRAs have no Required Minimum Distributions (RMDs)—you can leave money growing as long as you want.
2026 Roth IRA income limits:
- Single filers: Phase-out begins at $150,000; ineligible above $165,000
- Married filing jointly: Phase-out begins at $236,000; ineligible above $246,000
If you earn too much for a Roth IRA, look into the “backdoor Roth IRA” strategy (consult a tax professional).
7. Plan for Longer Lifespans
Since women live longer on average, your retirement savings need to last longer. Consider:
- Delaying Social Security: Each year you delay claiming beyond age 62 (up to age 70) increases your monthly benefit by roughly 8%
- Long-term care insurance: Buying it in your 50s or early 60s locks in lower premiums
- Health Savings Accounts (HSAs): If you have a high-deductible health plan, max out HSA contributions ($4,300 for individuals, $8,550 for families in 2026). It’s triple tax-advantaged and can be used for healthcare costs in retirement
8. Get Professional Help
According to financial industry data, working with a knowledgeable advisor can help you navigate legislative changes, optimize investment strategy, and avoid costly mistakes.
Many advisors offer free initial consultations. Look for:
- Fee-only fiduciary advisors: They’re legally required to put your interests first
- CFP (Certified Financial Planner) designation
- Experience working with women: Ask about their approach to the unique challenges women face
Yes, it costs money. But so does retiring broke.
Real-World Scenarios: What This Looks Like
Scenario 1: Starting at 25
Salary: $60,000
Starting contribution: 6% ($3,600/year)
Employer match: 3% ($1,800/year)
Total annual: $5,400
Result at age 65 (7% average return): Approximately $1.2 million
Scenario 2: Starting at 35
Salary: $80,000
Starting contribution: 10% ($8,000/year)
Employer match: 4% ($3,200/year)
Total annual: $11,200
Result at age 65 (7% average return): Approximately $1.1 million
Scenario 3: Catching Up at 45
Salary: $100,000
Starting contribution: 15% ($15,000/year)
Employer match: 5% ($5,000/year)
Total annual: $20,000
Plus catch-up contributions at age 50: Additional $8,000/year
Result at age 65 (7% average return): Approximately $900,000-$1 million
Note: These are simplified examples assuming consistent contributions and returns. Actual results will vary. Use retirement calculators for your specific situation.
Common Objections (And Why They Don’t Hold Up)
“I can’t afford to save right now.”
Start with 1%. You can’t afford NOT to save. Future-you is depending on current-you to take action. Even $25/month adds up over decades.
“I need to save for my kids’ college first.”
Your kids can take out loans for college. You cannot take out loans for retirement. Securing your own financial future helps your kids more in the long run—they won’t need to support you financially.
“I don’t know enough about investing.”
Start with target-date funds or speak to your plan administrator. You can learn as you go. Not starting because you don’t know everything is more costly than starting imperfectly.
“My partner handles our finances.”
60% of women end up financially on their own in retirement through divorce, widowhood, or remaining single. You need to be involved now. At minimum, know: what accounts exist, how much is saved, where it’s invested, who the advisors are.
“I’ll start saving more when I make more money.”
This rarely happens. Lifestyle inflation eats raises. Start with what you have now—the habit is more important than the amount. You can always increase later.
“Retirement is so far away.”
Time is your biggest advantage. A 25-year-old saving $300/month has more at 65 than a 45-year-old saving $900/month, even though the older person contributed more total dollars. The earlier you start, the less you need to contribute.
Your 2026 Retirement Action Plan
Don’t let this article be just another thing you read and forget. Here’s your action plan for the next 30 days:
Week 1: Assessment
- Pull up all retirement account statements (401(k), IRA, etc.)
- Calculate your current total retirement savings
- Identify your current contribution percentage
- Check if you’re getting full employer match
Week 2: Optimization
- If you’re not contributing at all, start with at least 1%
- If you’re contributing but not getting full match, increase to match level
- If you’re getting the match, increase by 1-2% more
- Set up auto-escalation if available
Week 3: Expansion
- Research opening an IRA (Traditional or Roth)
- Set up automatic monthly contributions
- Review investment allocations—are you in age-appropriate funds?
- If you’re over 50, explore catch-up contributions
Week 4: Education & Support
- Schedule time each week for financial education (even just 30 minutes)
- Research fee-only financial advisors if you want professional help
- Talk to your partner (if applicable) about retirement planning together
- Share this information with women friends—we all need to talk about this more
Key Takeaways
- The gap is real: Women have saved one-third of what men have for retirement
- Women need MORE, not less: Longer lifespans, higher healthcare costs, and higher probability of being single in retirement
- The pay gap compounds: Lower lifetime earnings = less ability to save
- Women are better investors than they think: More disciplined, less impulsive, better long-term results
- Start now, even small: 1% contribution is better than 0%
- Get the employer match: It’s free money—100% return
- Automate everything: Set it and forget it
- Invest, don’t just save: Cash loses value to inflation; investments grow
- Max out 2026 limits if possible: $24,500 for 401(k), $7,500 for IRA
- Catch-up contributions matter: $8,000 extra for 50+, $11,250 for 60-63
- Get professional help: A good advisor pays for themselves
- You can’t retire on loans: Prioritize your retirement over kids’ college
Here’s the uncomfortable truth: if you don’t take action on this, no one else will. Your employer isn’t going to force you to save enough. Your partner might not be around forever. The government programs that exist (Social Security, Medicare) won’t be enough on their own.
The retirement savings gap for women is a crisis, but it’s also an opportunity. Every woman who gets her finances in order, who starts investing, who maxes out her contributions—she’s not just securing her own future. She’s modeling financial empowerment for the next generation.
You don’t need to be a financial expert. You don’t need to be wealthy. You just need to start.
Today. This week. Before you close this tab and move on to the next thing.
Because retirement might feel far away, but it’s coming whether you’re ready or not. And the difference between a retirement filled with freedom versus one filled with financial stress comes down to the actions you take right now.
Future-you is counting on it.
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