Olena Zagoruyko/Getty Images
Women, money and retirement
For Women’s History Month, lets talk about some of the statistics around women, savings and assets.
This column has celebrated Women’s History Month in past years where I’ve highlighted some exceptional women who made contributions to advance retirement benefits and financial security throughout history. For example, in 2022 I wrote 4 Women Who Shaped Modern Retirement, which celebrated notable women in the history of our modern retirement programs.
Today, the status of retiring and retired women can be compared to their male counterparts to show how far women have come or in some cases, how far women still need to go. Despite the war on Diversity, Equity, and Inclusion, International Women’s Day was celebrated on March 8, 2025. According to Politico, women, who have largely benefited from affirmative action and DEI policies, will likely have to adapt to a rapidly changing workforce environment that no longer prioritizes quotas or other gender-based hiring practices. This internationally recognized day provides a forum for discussing issues that women confront and the uphill battles they fight daily and promoting their rights in a plethora of aspects, including political involvement, work, and education.
A Jan. 20 executive order directed the director of the Office of Management and Budget, assisted by the attorney general and the director of the Office of Personnel Management, to coordinate on the termination of all discriminatory programs, including illegal diversity, equity, inclusion, and accessibility mandates, policies, programs, preferences, and activities in the federal government. Ironically, President Trump proclaimed March 2025 as Women’s History Month to celebrate the exceptional women in our lives and around the country.
To better understand how women prepare for and live in retirement, the National Council on Aging conducted a survey in 2022 of Americans ages 50 and older and found that women reported retiring, on average, at age 64. According to OPM, in 2022, 45% of the immediate optional retirements were women and the average age at retirement was 63.3. Half of retired women expect to live 21 or more years in retirement, which is consistent with data from the Labor Department.
Is it important to have wealth?
According to a recent issue brief by the Dept of Labor’s Women’s Bureau, wealth (or net worth) refers to the total value of all assets and equity, financial or nonfinancial, minus debts. It is considered an important marker of economic well-being—a measure of resources available in the case of a drop in income due to nonemployment, illness, divorce or other reasons. Wealth can generate income, such as dividends, interest, business profits or rent even without selling an asset. Wealth can also be passed down across generations and the ability to contribute to the financial security of one’s surviving spouse, children or grandchildren represents a strong bequest motive to save for many. In general, financial assets are those that can be readily converted into cash and include balances held in checking or savings accounts, as well as stocks, bonds, or mutual funds, retirement accounts or some life insurance policies. Nonfinancial assets can be sold but are less readily converted to cash and include real estate, the market value of businesses or other assets like artwork or jewelry.
Both women and men report greater total wealth in the older age groups. Among those nearing retirement ages (50 to 61 years), women report $125,812 compared to $171,898 for men. In the ages where many eligible workers begin to claim their Social Security benefits (62 to 69 years), women report $173,682 in total wealth compared to $222,879 for men. Those age 70 and older report total wealth of $205,503 among women and $261,506 among men. In other words, the median wealth value reported by women in the 50–61-year age group is 73% of similar men’s but slightly greater, 79%, among women and men aged 70 and older.
Some key findings by the Labor Department’s Women’s Bureau include:
- The gender wealth gap increases with educational attainment. Among persons with advanced degrees, men’s wealth outpaces women’s wealth by 42% among bachelor’s degree holders and 53% among master’s, doctoral and professional degree holders. Much of this gap is driven by the dramatic gender gap in retirement account holdings: women with a bachelor’s degree or more who have a retirement account possess less than half as much equity as comparable men.
- Among persons with a high school diploma or less, men are more likely to have a retirement savings account (32% vs. 26% for women), and those who do have an account have amassed 63% more than comparable women at the median (female-to-male median wealth ratio is 62%).
- Retirement accounts are an important source of wealth for many. However, only about one-third of Black men and women hold retirement accounts, and at the median, Black women’s account balances are only 55% as much as Black men’s ($38,988 vs. $71,023). Among Hispanics, about 25% of women have a retirement account, compared with 34% of men. Hispanic women account holders at the median possess about 70% as much in balance as their male counterparts ($45,016 vs. $64,108).
- While equity in a primary residence is a major source of wealth, the amount of equity held is very similar for women and men who own a home. Among never married persons, women are more likely than men to be a homeowner (42% vs. 36%) and among these homeowners, women and men have similar levels of home equity, $161,323 and $166,695 respectively.
Is there good news for women?
New research from Edward Jones noted that a great wealth transfer is underway, and over the next 20 years, an estimated $84.4 trillion in assets will be passed down from the Silent Generation and baby boomers. The research also found that 87% of women define the purpose of wealth to gain financial security and the freedom to live the life they want, and 85% view it to achieve a better quality of life. Women will value an inheritance of wealth whether they are leaving something for loved ones or receiving a windfall. Women have financial considerations that may differ from men stemming from longer lifespans and often assuming more caregiving responsibilities. A financial adviser can be consulted to help navigate goals to minimize risk and maximize income. This is especially important if you have a lack of confidence when it comes to managing investments or a financial windfall. Studies have shown that more women than men feel overwhelmed in managing personal wealth.
Judith Ward, CFP® provides five steps women can take to prepare for a financial “shock” such as loss of a job, widowhood, or divorce:
- Have three to six months in emergency cash reserves to cover your living expenses.
- Make sure the primary earner has enough life and disability insurance to support the family should something happen. If one spouse is at home, insurance can be important to cover expenses that would need to be outsourced if that spouse was not around.
- It’s extremely important to understand the financial position of the entire household—what is owned and what is owed. What are the household debts? What are the savings and investments that are intended to help achieve future goals, and how is the family tracking to meet those goals? Whether you are part of a couple or live alone, it is important to stay on top of your expenses and the income needed to avoid unnecessary debt due to late payments, fees, and overspending.
- Education is important to learn how to save and invest for meeting financial goals.
- Women are more likely to leave the workforce to care for children or an aging parent which means they may be out of the workforce during their peak earning years. This career gap may make it difficult to reenter the workforce.
According to Ward, women may want to consider keeping a foot in the door. Part-time, contractual, or consulting work not only will contribute to the household, but it will also help keep their skills sharp and future hiring prospects brighter. Volunteering is one way to maintain professional skills, and engaging in supportive networks is also helpful. Additionally, continuing education to advance a future career can be extremely rewarding. If a woman finds herself in a situation where she has sole financial responsibility, she will have the confidence to make the most of potential opportunities.