When it comes to retirement readiness, women lag far behind men. This makes them especially vulnerable if they plan to rely on a spouse's 401(k) plan to help them shore up their own retirement security. For example, the current law provides a woman very little protection if her spouse takes a 401(k) distribution without her consent.
Some lawmakers are trying to change that by reintroducing the Women’s Retirement Protection Act of 2025 (WRPA). While the chances of its passage currently are not high, the WRPA would establish new guarantees to ensure women have fair access to retirement plans their husbands may have been able to invest in while they cared for the family.
Senator Tammy Baldwin (D-WI) and Rep. Lauren Underwood (D-IL) led a group of their colleagues in re-introducing this legislation on March 11 and 12. Baldwin said, "I am proud to introduce this legislation to extend protections for women in the workforce and ensure more Americans get the hard-earned retirement they deserve.”
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What Would the Women's Retirement Protection Act Do?
The Women's Retirement Protection Act of 2025 (WRPA) contains several provisions that address some of the biggest vulnerabilities women experience under current retirement rules.
Consent for 401(k) withdrawals. Under existing rules, one spouse could take a loan or distribution from their 401(k) without the knowledge or consent of the other spouse. Since a 401(k) is often a family's largest asset besides their home, this could financially devastate the spouse who is unaware of the borrowing or withdrawal. The Federal Thrift Savings Plan, available to federal workers, already requires this consent, and lawmakers would extend it to private-sector 401(k) accounts.
Financial literacy. The Act also aims to improve financial literacy by requiring links to Consumer Financial Protection Bureau retirement resources in all offers for the sale of retirement plans.
Help some women access necessary legal assistance during divorce or separation. Finally, the Act offers assistance covering legal fees for women who are pursuing the division of retirement plans in separation and divorce cases. This division occurs using a special separate court order called a Qualified Domestic Relations Order. Costs for QDROs have been increasing, putting them out of reach of the most vulnerable women most in need of protection. Funding could open up the door for more people to fight for plan access.
Women face added challenges in retirement planning
Currently, while plans require the written consent of a spouse to designate a non-spouse primary beneficiary, most do not require a spouse (of either gender) to agree to a withdrawal or loan from the plan, even if that person is set to receive the funds if the primary account owner passes.
Ensuring women have access to a 401(k) in a divorce or separation and preventing a spouse from draining the account is especially important because women face several barriers to effective retirement savings.
The gender pay gap is one of the biggest obstacles holding women back. Full-time working women earn 82.7 cents on the dollar compared to their male counterparts. This comes at a cost of over $406,280 during a career, which means less money to save and smaller Social Security checks.
Women are also more likely to interrupt their careers for caregiving responsibilities. In 2022, 14% of prime-age women served as full-time caregivers, compared with 1.5% of prime-age men. According to the Department of Treasury, another 21% of women worked part-time, compared with 11% of men.
Time spent outside of the workforce also affects women's ability to contribute to retirement plans and to earn the highest possible Social Security benefit, as benefits are based on average inflation-adjusted earnings over 35 years.
These factors have very real consequences. Morgan Stanley reports that women have 32% less retirement savings than their male counterparts despite needing more money because they often live longer.
While influential organizations like AARP support the legislation, it is unlikely to pass, especially in an administration that aims to cut government spending.
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