Why Women Face a $100,000 Retirement Savings Gap
Women are living longer but retiring with significantly less savings. The gender retirement gap averages $100,000 or more—and the reasons are complex and systemic.
AVERAGE WOMEN’S 401(k) BALANCE VS. MEN’S
$120,000 vs. $170,000
Sources: Vanguard, 2025
Key Factors Behind The Gap
- Longer life expectancy (women live 5 years longer on average)
- Career interruptions for caregiving reduce lifetime earnings
- Lower average wages compared to men
- Higher healthcare and long-term care costs
- Widowhood and survivor benefit complexities
Life Expectancy Differences Affect Savings Needs
| Metric | Women | Men |
|---|---|---|
| Life Expectancy at 65 | 86 years | 81 years |
| Years to Fund | 21 years | 16 years |
Widowhood Financial Impact
Women often lose an income source upon spouse’s death, but this can affect Social Security benefits and investments.
Strategies To Close The Gap
- Maximize catch-up 401(k) contributions
- Consider spousal IRAs
- Delay Social Security to maximize survivorship benefits
- Plan for long-term care costs explicitly
- Consider working longer if possible
About the Author: Robert Chen is a Retirement Finance Analyst at RetireMetric.com, focusing on women’s retirement issues, longevity risk, and planning strategies to close the gender wealth gap.
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