Retirement should be the season of life when we finally exhale, when years of work and care turn into security and freedom. But for women, the math can be different. We earn less than men, we take on more unpaid caregiving, and we live longer. That combination means we have to save more—just to reach the same level of comfort.
This isn’t about bad habits or poor planning. In fact, research shows women are often more disciplined savers and investors than men. The challenge comes from the system itself: how work, family, and social expectations collide to leave us with less in retirement. Recognizing the problem is the first step. Taking action is the next step.
Why Do Women Need to Save More for Retirement Than Men?
The retirement gap comes down to three big factors: the wage gap, the caregiving gap, and longevity.
We know the wage gap exists. On average, women in the U.S. earn about 82 cents for every dollar men earn. It may not sound like much in a single paycheck, but stretched across an entire career, it can add up to hundreds of thousands of dollars in lost income—and smaller contributions to retirement accounts. Even when we save diligently, setting aside the same percentage as a male colleague, our contributions are often lower in absolute dollars. Thirty years of compound interest only widens that gap.
Then there’s the caregiving gap. Many of us step out of the workforce to raise children, care for aging parents, or both. These years are filled with love and necessity, but financially they come at a cost. Time away from paid work means missed paychecks, missed employer retirement matches, and missed Social Security credits. When we return to work, it’s often at lower pay or part-time hours, which compounds the shortfall.
Finally, there’s longevity. Women tend to live about five years longer than men. That can be a blessing—more time for family, travel, or simply enjoying life—but it also means more years of expenses. Housing, food, healthcare: all of it stretches further. Healthcare, in particular, tends to cost women more in retirement, both because of longer lifespans and certain medical needs.
On top of women entering retirement with smaller account balances, they also need those balances to last longer.
The Impact of the Wage Gap
Think about two people saving side by side. Both contribute 10% of their salary to retirement accounts. One earns $75,000, the other $60,000. At the end of the year, one has contributed $7,500; the other $6,000. Over three decades, assuming steady contributions, potential employer matches, and compound growth, this difference can grow substantially.
This is why the wage gap isn’t just about the here and now—it ripples forward into retirement. Even when we do everything “right,” we’re often building with fewer bricks.
The Caregiving Penalty
If the wage gap chips away at retirement savings slowly, caregiving can take chunks out all at once. A five-year career break to raise children doesn’t just mean five years of missed contributions. It means missed raises, missed promotions, and a lower salary trajectory upon re-entry.
Many women also scale back hours or shift into more flexible but lower-paid roles to balance caregiving responsibilities. These choices are often unavoidable and deeply valuable, but the financial trade-offs linger long after the caregiving years are over.
Caregiving, in other words, isn’t just unpaid—it carries a retirement penalty.
