There’s no doubt that planning for retirement is a tough task for most Americans, but it can be even harder for women. It’s no mystery why. The average woman will live five years longer than her male counterpart, according to the Centers for Disease Control and Prevention, which means she needs to prepare for a retirement that is potentially much longer.1
Women in the United States earn about 84 cents for every $1 earned by men, according to the National Women’s Law Center,2 and they spend more time out of the workforce caring for children and parents, according to the Family Caregiver Alliance.3 As a result, women tend to accumulate less savings for retirement.
And in the end, many women face retirement on their own. Indeed, many believe they will be personally responsible for their finances at some point in their adult life.
Whether they outlive their partner, never marry or join the growing ranks of those who’ve gotten a gray divorce, retirement planning challenges can be even more acute for single women. In 2024, more Americans will turn 65 than at any point in history, and with this milestone, we’re seeing more single women than ever facing retirement without the financial balance provided by a partner.4
Guidance from a financial professional is key
The No. 1 piece of advice for any investor — but particularly single women — would be to engage a financial professional.
A trusted financial professional can help single women create a holistic long-term plan that takes into account factors like when to claim Social Security, costs for health care and long-term care and income in retirement. And for younger women, that discussion can include short-term priorities like paying down student loans, buying a home and how much they should be saving now.
If you feel you can’t afford to work with a financial professional, don’t assume you can’t access professional guidance. Be sure to explore resources offered by your employer-sponsored retirement plan, many of which offer personalized financial planning services at little or no cost.
Other actionable tips
There are a variety of other ways women can empower themselves, and a great source for advice is women who have reached retirement.
Here are a few more tips for single women:
Prioritize retirement savings. Don’t wait to start participating in your workplace retirement plan, or you’ll miss out on the biggest advantage young savers have: the power of compounding interest. Be sure to leverage the full employer match and allow auto increases to accelerate your saving. Remember, saving should not be an all-or-nothing proposition. Start now — even if you have to start small.
Invest in your career. Focus on education and skills training, which can lead to higher income and more opportunities to save in the long run.
Build an emergency fund. Without a partner to share financial burdens, unexpected expenses or loss of income can be devastating. Try to save at least three to six months’ worth of living expenses in an easily accessible account.
Consider your estate plan. Make sure you have a will and consider setting up a trust if you have specific wishes for your estate. Be sure to share your wishes with people you love and trust.
Don’t delegate financial planning. If you’re currently in a relationship where your partner manages financial decisions, start participating now. There’s a decent chance you’ll outlive your spouse — at which point you’ll be glad you had visibility and influence on previous planning decisions.
Whether you’re a young woman early in your retirement planning journey or nearing the finish line, don’t wait to empower yourself to achieve your retirement goals.
