Challenges Women Face in Securing Retirement Income
For many women, building reliable retirement income feels especially difficult. Two major hurdles tend to make this harder: longer lifespans and persistent earnings gaps.
Longer Life Expectancy
Women generally live longer than men, which means their retirement resources must stretch further. According to Social Security actuarial tables, an average woman who reaches age 65 can expect about 20.6 more years, while a man of the same age expects about 18.1 years of additional life. (Actuary.org)
Still, these are averages—and many women will live well beyond those numbers. As a result, retirement planning must allow for possible extra years into the 80s and 90s.
To avoid outliving assets, it helps to start saving early, build diversified investments, and not rely entirely on Social Security as a primary income source.
Erosion of Social Security’s Strength
Relying heavily on Social Security is risky. Current legislation and demographic trends suggest that the program’s trust funds may become strained. According to the Social Security Administration, its reserve funds are projected to be depleted sometime in the 2030s. (Social Security)
Meanwhile, the full retirement age (FRA) has gradually increased—from 66 toward 67—meaning many women will see reduced benefits if they claim earlier. Experts observe that at nearly every age, the benefit you receive today is smaller than what someone with the same work record might have gotten in past decades. (Schwab Brokerage)
Because of these shifts, Social Security should often be viewed as one pillar of retirement income, not the sole support.
Persistent Earnings Gap
Women still tend to earn less than men over the course of their working lives. In 2023, full-time working women earned about 83.6% of what men earned. (Bureau of Labor Statistics)
Analyses of all workers (not just full-time) show women earning as much as 85% of men’s pay, depending on the data set used. (Forbes)
For women of color, the gap is often wider. Some studies show African American and Hispanic women earn significantly less relative to white men when accounting for occupation, experience, and hours. (Oxfam America)
This wage gap has a compounding effect: less income means fewer contributions to retirement accounts (like 401(k)s or IRAs), smaller Social Security benefits (which depend on lifetime earnings), and lower accumulated savings.
Strategies to Mitigate These Challenges
Here are sensible approaches women can take to overcome the longevity and earnings barriers:
Shift into Higher-Paying or More Equitable Fields
Transitioning into careers or industries where pay is less gendered or where merit plays a bigger role can boost long-term earnings. For example, technical, financial, or health care roles may offer narrower pay gaps and more growth potential.
Maximize Retirement Contributions and Diversify
Taking full advantage of retirement plans (401(k), IRA, Roth options), employer matches, and supplemental investment accounts can help build a stronger financial foundation. Also, consider income-producing assets, annuities, or other instruments that protect against longevity risk.
Delay Social Security Benefits When Possible
If your health and finances allow, delaying Social Security past the early claiming age can increase monthly benefits—often by significant percentages per year delayed.
Plan Holistically with Professional Guidance
Work with a financial planner or elder law attorney early on to create a retirement strategy tailored to your situation:
- How to allocate income, savings, and investments
- How to integrate spousal benefits or inherited assets
- How to structure withdrawals to minimize tax drag or benefit cutoffs
