How plan sponsors can help women close the retirement savings gap
Women have made great strides in the workplace, assuming leadership roles and breaking glass ceilings. But despite these achievements, many still struggle to accumulate meaningful retirement savings due to the unique financial challenges they face. Let’s explore how these challenges contribute to the retirement savings gap and what you can do to help women close it.
How women are falling behind saving for retirement
With the high cost of housing, multiple financial priorities, and rising prices, saving for the future can be tough for everyone. But women in particular are struggling.
Why women tend to retire with less money than men
There are multiple financial and lifestyle factors that can hinder a woman’s ability to save enough for retirement, including compensation, family circumstances, and longevity. Let’s take a closer look at each one.
1 Gender pay gap
On average, women earn $0.81 for every $1 men earn.2 This gap means your female employees often need to contribute more of their paycheck to their retirement account than their male counterparts just to reach the same savings goal. Unfortunately, many are hesitant or unable to increase their contributions, given other financial priorities. More than 60% are focused on their day-to-day expenses and worried about how much debt they have.1
This pay inequality also affects Social Security, another key source of retirement income for many women. Lower wages mean less Social Security income, which creates a vicious circle. To compensate for smaller payments, women have to rely more heavily on their workplace retirement plans and other personal savings.
2 Caregiving responsibilities
On the home front, family responsibilities interrupt many women’s career paths, affecting their overall earnings potential and ability to save. That’s because, although traditional gender roles have blurred, women still serve as the primary caregiver for both children and adult family members.
Of the roughly 63 million caregivers in the U.S., 61% are female.3 Being a caregiver often means stepping away from the labor force for months or years at a time or switching to part-time work. With less income flowing in, it’s harder to save for retirement. And it’s often difficult for the caregiver to make up for lost time and contributions when she resumes her career, despite her best intentions. These job gaps can also affect her future Social Security payments by reducing the earnings history used to calculate benefits.
3 Longer life expectancies
Many women fail to consider longevity risks when planning for retirement, resulting in inadequate savings levels. The average life expectancy of women is 81.4 But many may live well past this age. A longer life expectancy translates into a longer retirement, requiring savings that may potentially need to last 40 years. It also means planning for higher healthcare costs and, if they’re married, the possibility that they may spend part of their retirement alone. In 2023, 29% of women age 65 and older were widows.5
Almost 40% of women plan to delay retirement, primarily to build their savings. But working longer isn't always an option. More than half of retirees in our financial resilience and longevity study stopped working early than planned, at an average age of 56.1
Support women on their journey to retirement
Even though these challenges are outside women’s control, your support can make a difference. Women value the information they receive from employers, financial professionals, and retirement plan providers.
Women make a big impact in the workplace. Make sure your support is just as impactful for their future. To do that, consider:
- Surveying female employees to find out their top financial concerns and priorities
- Hosting women-only virtual and on-site meetings
- Tailoring existing education to women’s unique planning needs
- Expanding the conversation beyond money to include caregiving and other areas necessary for living well
- Partnering with your plan’s provider to offer personalized planning tools and resources
- Asking female retirees to share their experiences and lessons learned to help underscore the importance of planning
- Identifying female employees who could serve as plan ambassadors and financial mentors, encouraging their peers to prioritize their well-being
Through comprehensive retirement planning, you can help the women in your workforce feel more prepared to live longer, better lives.
FAQs
Why do women tend to have less retirement savings than men?
Women often face financial challenges that can make it harder to build retirement savings over time. On average, they earn less than men, are more likely to take career breaks for caregiving, and tend to live longer. These factors can reduce both retirement plan contributions and long-term investment growth, making it more difficult to achieve retirement readiness.
How does caregiving affect a woman’s retirement savings?
Caregiving can have a significant impact on retirement savings. Women are more likely to reduce their work hours, take extended leave, or leave the workforce altogether to care for children, aging parents, or other family members. These interruptions can result in lower earnings, fewer retirement plan contributions, missed employer matching contributions, and reduced Social Security benefits. Over time, even short career breaks can make it more difficult to catch up on retirement savings.
Do women need to save more for retirement than men?
Women generally need to save more than men because their retirement savings often need to last longer. Longevity can mean spending more years in retirement and facing higher lifetime healthcare and living expenses. Combined with lower lifetime earnings, this can create additional pressure to build more savings and develop a long-term retirement income strategy.
What can women do to help close the retirement savings gap?
Women can help close the retirement savings gap by:
- Starting early, saving consistently, and increasing contributions whenever possible
- Taking full advantage of employer matching contributions
- Creating a comprehensive plan for retirement
- Staying invested through market ups and downs
- Regularly reviewing savings goals and adjusting for major life events
How can we make a longer retirement better?
Longevity is about balancing health and wealth to help make those extra years better. The implications are shifting the way we think about retirement.
1 In June 2025, Manulife John Hancock Retirement commissioned our eleventh annual financial resilience and longevity survey with the respected research firm Edelman Public Relations Worldwide Canada (Edelman). An online survey of 2,534 Manulife John Hancock Retirement plan participants was conducted between 5/9/25 and 6/2/25 and 512 retired Americans, sourced through Angus Reid’s research panel, was conducted between 5/9/25 and 6/2/25. The objectives of the study were to learn more about individual stress levels, their causes and effects, strategies for relief, and to provide custom insights around how retirees are faring in retirement. Manulife John Hancock Retirement and Edelman are not affiliated, and neither is responsible for the liabilities of the other. 2 “TED: The Economics Daily,” U.S. Bureau of Labor Statistics, 4/22/26. 3 “Caregiving in the U.S.,” National Alliance for Caregiving and AARP, July 2025. 4 “Mortality in the United States, 2024,” CDC National Center for Health Statistics, 1/29/26. 5 “2023 Profile of older Americans,” Administration for Community Living, May 2024.
Important disclosures
Important disclosures
The content of this document is for general information only and is believed to be accurate and reliable as of the posting date, but may be subject to change. It is not intended to provide investment, tax, plan design, or legal advice. Please consult your own independent advisor as to any investment, tax, or legal statements made herein.
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