{"id":22093,"date":"2025-11-05T06:52:27","date_gmt":"2025-11-05T06:52:27","guid":{"rendered":"https:\/\/incredipros.com\/?p=22093"},"modified":"2025-11-05T06:52:28","modified_gmt":"2025-11-05T06:52:28","slug":"28-of-working-women-are-leaving-free-money-on-the-table-that-could-set-back-their-retirement","status":"publish","type":"post","link":"https:\/\/incredipros.com\/?p=22093","title":{"rendered":"28% of working women are leaving free money on the table that could set back their retirement"},"content":{"rendered":"
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A larger share of women than men aren\u2019t saving for the future and could miss out on hundreds of thousands of dollars over their lifetime as a result, a Bankrate national opinion poll found.<\/p>\n

Bankrate\u2019s retirement savings survey found that more than a quarter of women (28%) working full-time, part-time or looking for employment didn\u2019t contribute to their retirement savings between 2024 and 2025, compared to 18% of working men. The share of Black and Hispanic working women who didn\u2019t put money away for retirement between 2024 and 2025 was even higher (33%).\u00a0<\/p>\n

It\u2019s not entirely clear why women tend to save less for retirement. While the gender pay gap is part of the problem, a wide body of research also suggests women feel misunderstood in the investing world, which may be driving their behavior. <\/p>\n

Generally, research from Fidelity Investments, one of the largest retirement account providers in the country, suggests women are more likely to keep more of their savings in cash, feel less confident about their investment knowledge and report higher levels of financial stress.<\/p>\n

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\n Women feel that they can and should be saving more for retirement and they don\u2019t feel like they\u2019re taking enough action. We\u2019re making progress, but there\u2019s still a long way to go.<\/p>\n

\n \u2014 Lorna Kapusta, Head of Women and Engagement at Fidelity Investments<\/cite>\n <\/p>\n<\/blockquote><\/div>\n<\/p><\/div>\n<\/div>\n

Women have historically invested less for retirement, but that\u2019s changing<\/h2>\n

The investment industry is slowly evolving to meet women where they are, but there\u2019s still plenty of room for growth. Because the industry was originally built for more of a \u201cmale trader mindset,\u201d Kapusta says.<\/p>\n

\u201cThe industry has made it more complex than it needs to be when it comes to investing,\u201d Kapusta says. \u201cIt starts with the fact that the language the investing industry has historically used is full of jargon.\u201d<\/p>\n

While men are still more likely than women to be investors, the investment industry has come a long way over the last decade in terms of accessibility. Today, you can invest online with as little as a dollar in 401(k) plan, individual retirement account or Roth individual retirement account \u2014 and it can cost little to do it online from the comfort of your home.<\/p>\n

Kapusta says many retirement providers are making a conscious effort to make retirement accounts and investing resources more accessible for women. And more importantly, they\u2019re trying to get more women engaged with their retirement accounts and investments.\u00a0<\/p>\n

There are more women investing for retirement than ever before, despite more than a quarter of working women not participating. In the last few years, the percentage of women in the workforce who have contributed to their retirement savings has slowly ticked up.\u00a0<\/p>\n

Bankrate surveys have consistently found over the past several years that about seven in 10 women contribute to their retirement savings, and a recent study by Fidelity found that the number of women investing in the stock market has risen by 18 percentage points to 71% from 2023 to 2024.<\/p>\n

However, even when working women are putting money away for retirement, 51% say they\u2019re not likely to save enough to retire comfortably compared to 44% of men, Bankrate\u2019s retirement savings survey finds.<\/p>\n

Women can miss out on hundreds of thousands of dollars when they don\u2019t invest<\/h3>\n

Another reason women may not be as aggressive as men when it comes to investing is that they like to hang on to their cash, explains Emily Green, head of private wealth management at Ellevest. The average woman keeps 70 cents of every dollar in cash, according to Green.<\/p>\n

\u201cThat costs the average woman hundreds of thousands because they are not investing and getting that compound interest,\u201d Green says. \u201cThose are real numbers.\u201d<\/p>\n

The chart below shows the difference in average returns over 40 years when investing in the S&P 500, compared to stuffing money under a mattress or putting money in a high-yield savings account. The varying monthly contribution amounts show how much women stand to gain over a 40-year period across those different saving strategies.<\/p>\n

Women feel less confident about retirement planning \u2014 why that\u2019s a problem<\/h2>\n

Research shows women are better investors than men, which begs the question: Why are a quarter of working women leaving free money on the table?<\/p>\n

Experts point to the gender confidence gap in investing. Men are far more comfortable investing for their retirement savings than women, according to a May 2023 Federal Reserve survey. Generally, men tend to be overconfident investors, whereas women generally are more risk-aware and tend to hold onto their investments, according to Green.<\/p>\n

\u201cThey want to understand the risk that they\u2019re taking and take a calculated risk \u2014 not that they don\u2019t want to take any risk,\u201d she says.<\/p>\n

That makes women better long-term investors, but it can also prevent them from taking action if they don\u2019t have all the information in front of them to make financial decisions, says Cady North, founder and CEO of North Financial Advisors, which specializes in helping women meet their financial goals.<\/p>\n

\u201cThey end up not making any action, which can be really detrimental versus making mistakes along the way,\u201d North says.<\/p>\n

Bankrate\u2019s retirement savings survey suggests that most working women don\u2019t feel on track with their retirement savings in 2025. About 6 in 10 working women (62%) feel behind where they should be with their retirement savings. That\u2019s compared to 55% of men who feel behind on their retirement savings.\u00a0<\/p>\n

4 ways that women can take action to start building wealth<\/h2>\n

Women have different financial needs from men and have to plan differently for their future selves. To help reduce these stressors and make the most of their money, here are four ways women can take action to build long-term wealth:<\/p>\n

1. Get familiar with investing basics<\/h3>\n

You don\u2019t have to be an investing pro to get started. North says women will often have an \u2018all-or-nothing\u2019 perspective with investing, but she wants women to know they can learn by taking a piecemeal approach.<\/p>\n

North suggests setting aside an hour a week for financial education, where you try to learn one new thing with regard to investing. Take advantage of free online resources to learn about different investment account options and investing basics, such as a diversified investment portfolio and your risk tolerance.<\/p>\n

Once you\u2019ve learned the basics, choose a retirement account to start investing.<\/p>\n

2. Take advantage of free retirement accounts<\/h3>\n

Experts say one of the easiest, most effective ways to start investing is with a 401(k) plan offered through an employer. Many employer-sponsored plans include a 401(k) match, meaning that if you contribute your pre-tax wages, your employer will match your contributions up to a certain percentage. That\u2019s essentially free money on the table for your future self.<\/p>\n

\u201cFocus on learning about what your employer offers in the way of investing for retirement,\u201d North says. \u201cThat should be your No. 1 focus because if you aren\u2019t investing yet, you\u2019re likely leaving money on the table by not getting that employer match.\u201d<\/p>\n

If you can\u2019t access a 401(k) plan, other free options like IRA accounts are available. A traditional IRA allows you to contribute pre-tax money earned through income, but a Roth IRA works a little differently. With a Roth IRA, you can only contribute after-tax dollars and there are income limits. If you like the idea of opening a traditional IRA or Roth IRA, look for a retirement provider with low fees.<\/p>\n

3. Start investing early, even if it\u2019s just a little bit<\/h3>\n

If there\u2019s one piece of advice that several investing experts agree on, it\u2019s this: Don\u2019t try to time the market, and start investing as soon as possible \u2014 even if it\u2019s just a few dollars a week.<\/p>\n

Financial experts recommend putting a portion of your paycheck into a retirement account and increasing your contributions over time as you establish a more regular habit of investing. If you have access to a 401(k) plan, contribute enough to grab your employer\u2019s match and increase your contributions by one or two percent each year.<\/p>\n

Taking your first step toward saving and investing, no matter how small it may seem, can lead to more financial \u201coptions and opportunities\u201d down the road, according to North.<\/p>\n

\u201cYou have the option to take a work break for whatever reason,\u201d she says. \u201cOpportunity in that you could retire early; you could start a business or you could do something different that\u2019s not so beholden or traditional in the workforce.\u201d<\/p>\n

4. Have a long-term mindset and plan for a longer retirement<\/h3>\n

Women, on average, live six years longer than men and, as a result, their dollars need to stretch further to cover a longer retirement. Given their longer lifespans, women have additional healthcare costs to consider during retirement, estimated to be $165,000 on average, according to Fidelity Investments. <\/p>\n

That\u2019s why it\u2019s important for women to have an investment strategy that matches their risk tolerance, timeline and long-term goals early on. Experts recommend spreading your investment portfolio across various assets to hedge your bets and boost the odds of higher returns over time.<\/p>\n