Most Women Surveyed Find Retirement Is Not What They Expected. How You Can Prepare

Less than half of working women feel prepared for retirement and of those already retired, only 19% find retirement to be exactly what they expected. Here's what you can do while still working.

By Kathryn Pomroy

published 18 December 2024

in News

Senior Women taking exercise class outdoors in Arizona — (Image credit: Getty Images)

Today’s women are often better educated and have made greater strides toward career fulfillment than thought possible 50 years ago. In the U.S. alone, women are expected to control $34 trillion (roughly 38%) of investable assets by 2030. That figure was just $7.3 trillion, or 29%, 10 years ago, according to McKinsey & Co.

Despite that, less than half (46%) of women in their working years feel like they are on the right track for retirement. Of those retired, only 19% find retirement to be exactly what they expected, according to the 2024 Women Speak Out on Money Matters survey from Corebridge Financial, with 26% going as far as to say that retirement is not at all what they expected. What is the most common retirement surprise? Cost, with 50% of retired women saying retirement is more expensive than anticipated.

Women have second thoughts about saving and investing

In your 20s, saving for retirement may not be a concern, much less a long-term goal. Yet, saving as much as possible as early as possible sets you up for financial success down the road. That may be one reason why 63% of women surveyed wish they had started saving earlier, knowing what they know now, with 51% of retired women describing their current financial health as good or very good.

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“At the same time, it’s important for those already in retirement to remember that it’s never too late to take action no matter where they are in their financial journey,” said Terri Fiedler, President of Retirement Services at Corebridge Financial.

Just 27% of women surveyed say they started saving and investing between 18-29. Taking that a step further, 42% of retired women say they did not begin prioritizing their financial and retirement planning until 41 years old or later, and 20% said they still have not started.

Women's greatest concerns in retirement

Behind inflation (52%), non-retired women rank the ability to retire comfortably (34%) and running out of money in retirement (30%) as their top financial concerns. This closely aligns with the concerns of retired women who rank inflation (57%) and running out of money in retirement (39%) as their biggest financial concerns. These concerns support the realities of a longer, more expensive retirement and a simple demographic trend: women outlive men by about 5.8 years on average.

Women getting it right

Among retired women, the number one financial step 35% of the women say they got right in their preparation for retirement is working with a financial professional, although 38% said they wished they started working with a financial professional sooner. Saving early and contributing more to their employer retirement savings plan rounded out the top three actions retirees felt helped prepare them for retirement.

“Retired women’s reflections are like messages from the future and hopefully inspire younger women to take those crucial first and next steps toward a secure retirement,” Fiedler said. “At the same time, it’s important for those already in retirement to remember that it’s never too late to take action no matter where they are in their financial journey.”

Steps female retirees can take

For women retirees (and non-retirees), there are often obstacles to tackling the most pressing financial concerns. Around 37% of non-retired women say that addressing their financial concerns causes them too much stress. Among retired women, 31% say they are not currently in a position to address their financial concerns. The good news is that 59% of non-retired women and 65% of retired women are actively working to address their concerns.

The survey maps out these action steps to ensure your financial future is moving in the right direction:

Envision your retirement

By creating an accurate picture of your ideal retirement, you can identify what savings and investment strategies you might need later in life, which looks different for everyone. Start talking about retirement and familiarizing yourself with basic concepts such as investing, budgeting, debt management and saving. But don’t forget about the non-financial aspect of retirement that women are anxious about, such as spending time with loved ones (39%), traveling (36%) and picking up new hobbies (33%).

Start saving now and maximize your retirement plan contributions

Most retired Americans believe they will need about $1.5 million in the bank to retire comfortably, according to a Northwestern Mutual’s 2024 Planning & Progress Study.

That said, 63% of retired women surveyed said they wish they had started saving earlier, while 31% said they wish they had contributed more of each paycheck into their retirement plan. Word to the wise: Take advantage of employer matching while working. It’s essentially free money added to your tax-advantaged retirement account.

Create a lifetime of income now

Among both retired and non-retired female respondents, the combined category of savings and money market accounts represents the most widely owned asset. The second most widely-owned asset among retired women (33%) is a pension, compared to just 9% of non-retired women. On the other hand, 31% of non-retired women said they have a workplace retirement account, compared to only 16% of retired women.

Consider working with a financial professional

The Corebridge survey found that working with a financial professional strongly correlates with better financial health and confidence. Nearly 60% of women who work with a financial professional rate their financial health positively, compared to just 33% who do not. Almost three in five women who work with a financial professional have confidence in their ability to plan for retirement, and 46% are confident in making sound investments compared to just 24% and 18%, respectively, among those who don’t.

Decide when to take Social Security

If retirement is just around the corner, decide now when to start taking Social Security. While you can begin payments at age 62, each year you delay increases your payment. For example, you might receive $1,400 a month starting at 62, $2,000 a month starting at 67, or $2,480 starting at age 70. That increase continues for the rest of your life.

And, don’t forget to factor in what you’ll owe for Medicare Part B premiums, which cost $174.70 per month in 2024 and $185.00 for 2025, and usually go up each year to match rising healthcare costs.

Look where your money goes

As you near retirement or if you’ve already made the leap, consider how you’d pay for long-term-care costs, such as in a nursing home. Genworth estimates the median cost of a private room in a nursing home was $116,800 annually in 2023. Assisted living services cost $64,200. If you have high-interest debt from credit cards or outstanding loans, come up with a plan (possibly with the help of your financial expert) to pay off or pay down these costs to remove the ongoing monthly expenses from your budget.

Bottom line

If the past census says anything about the state of women in retirement, it's this: About 50% of women ages 55 to 66 have no personal retirement savings, compared to 47% of men. It’s not surprising that women are stressed, especially considering that the money you need in savings today to retire comfortably is between $650,356 and $2,130,497, depending on where you live. You’ve still got a lot of life to live, so take charge of your finances now, so you can enjoy your retirement years stress-free from financial woes.

For the past 18+ years, Kathryn has highlighted the humanity in personal finance by shaping stories that identify the opportunities and obstacles in managing a person's finances. All the same, she’ll jump on other equally important topics if needed. Kathryn graduated with a degree in Journalism and lives in Duluth, Minnesota. She joined Kiplinger in 2023 as a contributor.