The Unique Challenges Women Face in Retirement

By Kailey Berendsen, Vice President of Buska Retirement Solutions and Buska Wealth Management

Retirement is often portrayed as a well-earned season of freedom and fulfillment, but for many women, the path to a secure retirement comes with unique and often overlooked challenges. While women today are more financially engaged than ever, systemic and life-cycle factors continue to create obstacles that can impact long-term financial security if not addressed with intention and planning.

One of the most significant challenges women face is longevity. On average, women live several years longer than men, which means their retirement savings must last longer. While a longer life is something to celebrate, it also increases the risk of outliving assets—especially when rising healthcare costs, inflation, and long-term care expenses are taken into account. Planning for a 25- to 30-year retirement is not uncommon, and it requires careful income and risk management.

Career interruptions also play a major role. Many women take time away from the workforce to care for children, aging parents, or other family members. These pauses can reduce lifetime earnings, limit opportunities for advancement, and result in fewer years of contributions to retirement plans. Even short gaps can have a compounding effect over time, particularly when it comes to employer-sponsored plans and Social Security benefits.

Earnings disparities further compound the issue. Despite progress, women still earn less than men on average, which directly affects how much they are able to save and invest. Lower earnings can also lead to lower Social Security benefits, making personal savings and strategic planning even more critical. For divorced or widowed women, understanding survivor benefits and claiming strategies becomes especially important.

Another challenge is confidence—or lack thereof. Studies consistently show that women tend to be less confident in their financial knowledge, even though they are often highly capable money managers. This confidence gap can lead to hesitation around investing, increased conservatism with portfolios, or delaying important financial decisions. Unfortunately, being overly cautious can limit growth potential and increase the risk of falling short of retirement goals.

Women are also more likely to face retirement transitions alone. Whether due to divorce or widowhood, many women find themselves managing finances independently later in life, sometimes for the first time. Navigating investment decisions, tax strategies, and income planning during an emotionally challenging period can feel overwhelming without proper guidance and support.

The good news is that these challenges are not insurmountable. With proactive planning, education, and a personalized approach, women can build confident, resilient retirement strategies. Working with a financial professional who understands these unique considerations can help women make informed decisions, align their financial plans with their values, and feel empowered about their future.

Retirement planning is not one-size-fits-all—and for women, acknowledging the realities they face is the first step toward creating a secure and fulfilling next chapter.