Keys to Addressing the Unique Retirement Needs of Women

Once you understand the economic and saving factors affecting your retirement planning, you can create a retirement defined by freedom, fulfillment, and the power of your own choices.

Understanding Economic Shifts

There's a seismic shift underway in the economy, driven by women's growing economic influence.

This is highlighted by the Great Wealth Transfer, which could triple the amount of financial assets U.S. women control to about $30 trillion by 2030.

Despite this economic shift, women continue to face other unique financial challenges that make planning for a secure future a priority, including complaining about being largely overlooked and misunderstood by the financial industry.*

Identifying Saving Challenges

Recent research conducted by Jackson National Life Insurance Company, in partnership with the Center for Retirement Research at Boston College, focused on understanding how financial planning, decision-making and attitudes vary by gender.

When it comes to women's financial journeys, there are several factors to consider, including lower average pay, career breaks for caregiving, and longer life expectancies — women typically live six years longer than men.

This can result in lesser lifetime earnings, fewer years of continuous saving, and a longer retirement period to fund.

A "cycle of disengagement," where financial challenges lead to lower engagement and smaller contributions, can make it harder for women to build confidence and momentum toward their retirement goals.

Research findings also revealed female investors are nearly three times more likely than pre-retired men to hold no investments at all, with 18% reporting they don't own any of the investment types listed in the study.

They're also less likely to have a formal financial plan — 39% compared to 50% of men — and tend to prioritize protecting their savings from loss rather than maximizing potential growth.

This cautious approach, while understandable, can limit long-term wealth accumulation.

Debt and financial stress also play a role in the retirement readiness of women.

More than a quarter of women pre-retirees report credit card debt exceeding $10,000.

Studies show women often use credit cards to cover household expenses, while men tend to use them for discretionary spending.

Income and asset disparities further compound the challenge.

Female pre-retirees report incomes that are 96% of those reported by men and household investable assets that are only 72% of those held by male pre-retirees.

Among unpartnered women, the gap widens — income levels reach 91% of men, but investable assets fall to just 61%.

Next Steps

To address and overcome retirement savings concerns, women can take advantage of widely available educational resources, including workshops and webinars, to improve financial knowledge.

They may also benefit from discussing financial goals and responsibilities with their partners to ensure clarity in financial planning and decision-making.

Another strategy is to establish regular financial check-ins to account for variables like unexpected health care costs, market downturns or other factors that can affect savings plans.

Partnering with a financial professional can help ensure a well-rounded strategy, even if someone prefers to manage the details themselves.

Women often lead the financial decision making in their homes and should play an active role in their saving and retirement planning.

Collaborating with a financial professional to develop a comprehensive plan and learning to better understand the risk-reward relationship in investing can help you create a diversified portfolio aligned with your risk tolerance and financial goals.

Tracy Rokas is the research and customer insights director at Jackson National Life Distributors, the marketing and distribution business of Jackson National Life Insurance Company.

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