It is no secret that saving for retirement is important, yet many women face challenges in building their retirement portfolios. Women save less than men, and they have fewer working years. These are factors that have made planning and saving for retirement a serious challenge for a lot of women.
Why Do Women Have Less Retirement Savings Than Men?
Different financial needs coupled with other family responsibilities make it difficult for women to save adequately for retirement. Often, women spend a lot more money on their families, children and other miscellaneous expenses compared with men.
Saving for retirement is not a top priority for some women who must pay off debt and cater to their daily living costs. For many, thinking about day-to-day, immediate financial needs comes first rather than long-term goals.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
In addition, men are paid 18% more than what women are paid. This affects how much money women can put aside as savings. Given that women have a higher life expectancy than men, women must stretch their savings. Women are usually more conservative with money than men, however, this often serves as a disadvantage as women are less likely to invest in the stock market.
How Women Can Recover Their Retirement Savings
Here are practical tips that can help women bridge the gender gap and recover their retirement savings.
First, women need to assess their financial situation to get a clear picture of how they use their money. To start saving, they need to analyze their income and spending. Then, they can adjust their spending habits to save more efficiently.
Secondly, prioritizing savings contributions will go a long way in recovering retirement savings. Women need to change their attitude when it comes to money and start saving for themselves. It is important to invest in things that help support and secure their future.
To succeed, women should set aside funds for their savings first before spending. As they budget, they should treat retirement savings as an urgent bill that needs to be paid.
If you are formally employed, your workplace retirement plan may be an excellent place to begin investing as it offers numerous perks. Your employer-sponsored 401(k) allows you to easily divert a portion of your salary into long-term investments and build your retirement portfolio efficiently.
The Importance of Educating Yourself
It is also integral that women educate themselves on retirement funds. They will save more confidently if they understand what they are saving for and why. Being knowledgeable about this venture will help women make well-informed decisions regarding their retirement savings plans.
As women learn, they can also seek advice from retirement savings experts, particularly financial advisers. A financial adviser can help women get individualized support tailored to their situation and goals, which may be more beneficial than trying to learn everything on their own. The right adviser can serve as a trusted partner throughout a woman’s financial journey and can provide support and guidance to invest wisely and grow wealth.
Talking to your colleagues about retirement planning is also beneficial. Female friends who are already retired can offer a treasure trove of wisdom and can share their experience on how planning for retirement has worked for them. Through sharing their experience, pre-retiree women can learn from their friends’ examples.
Consider Rebalancing Your Portfolio
Lastly, portfolio rebalancing/reallocation may have a positive impact on your retirement savings plan, and variation can help minimize risk. If you are in your 20s or early 30s, you should diversify your portfolio among several stock styles and sizes. You may consider large-, mid- and even small-cap stocks to round out your diversification.
As you approach retirement age, you may want to move your portfolio to a less aggressive mix. These less aggressive investment mixes are ideal for those close to retirement because they pose less threat to their already developed retirement portfolio, which needs to shift its focus to preservation of capital and moderate growth as one nears retirement. Working with a financial adviser can better prepare women to manage their portfolios and make the right choices for them.
Women need to take an active role in saving for retirement, start prioritizing saving early on, and focus on growth-oriented investments. Even small contributions over time will go a long way in providing funds for retirement. Financial advisers can provide the consultation, guidance and support to meet women’s needs. With the right financial education and the support of experts, women can bolster their retirement savings and build a secure future.
-
These Stocks Dipped in 2025. Do They Have Value?If you are looking to add new long-term positions to your portfolio, as you should, this is the time to examine stocks that the market shuns.
-
Striking Gold (or Gas): A Financial Pro Unpacks the Nuances of Energy InvestingInvesting in the energy industry, particularly oil and gas, involves understanding the facts about how projects generate returns through cash flow and long-term asset building, while also being aware of the risks.
-
Striking Gold (or Gas): A Financial Pro Unpacks the Nuances of Energy Investing
Investing in the energy industry, particularly oil and gas, involves understanding the facts about how projects generate returns through cash flow and long-term asset building, while also being aware of the risks.
-
Escaping the New Golden Handcuffs: A Financial Expert Has a Plan for Today's ExecutivesFeeling stuck in your job? It could be your complicated compensation package, but it also could be where you live, your family or even how you view yourself.
-
I'm a Financial Planner: Here's How to Invest Like the Wealthy, Even if You Don't Have MillionsPrivate market investments, once exclusive to the ultra-wealthy and institutions, have become more accessible to individual investors, thanks to regulatory changes and new investment structures.
-
Four Ways a Massive Emergency Fund Can Hurt You More Than It HelpsSaving too much could mean you're missing opportunities to put your money to work. Redirect some of that money toward paying off debt, building retirement funds, fulfilling a dream or investing in higher-growth options.
-
I'm a Financial Planner: How to Dodge a Retirement Danger You May Not Have Heard AboutTiming is everything, and sequence of returns risk can mean the difference between a retirement nest egg that's overflowing … or empty.
-
Caring for Aging Parents: An Expert Guide to Easing the Financial and Emotional StrainEarly conversations, financial planning and understanding the progression of care needs can help to mitigate stress and protect family relationships.
-
I'm a Financial Adviser: The OBBB Is a Reminder for Older People to Have a Long-Term PlanThe new tax bill presents a good opportunity for retirees to revisit tax plans, look into doing some Roth conversions and consider plans for long-term care.
-
I'm an Insurance Expert: This Is Exactly Why Your Insurance Rates Are Soaring (and What You Can Do)A dramatic rise in the frequency and cost of severe weather and wildfires means you need to prepare, prepare, prepare — no matter where you live — for higher premiums.
