A larger share of women than men aren’t 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.
Bankrate’s retirement savings survey found that more than a quarter of women (28%) working full-time, part-time or looking for employment didn’t 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’t put money away for retirement between 2024 and 2025 was even higher (33%).
It’s 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.
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.
Women feel that they can and should be saving more for retirement and they don’t feel like they’re taking enough action. We’re making progress, but there’s still a long way to go.
— Lorna Kapusta, Head of Women and Engagement at Fidelity Investments
Women have historically invested less for retirement, but that’s changing
The investment industry is slowly evolving to meet women where they are, but there’s still plenty of room for growth. Because the industry was originally built for more of a “male trader mindset,” Kapusta says.
“The industry has made it more complex than it needs to be when it comes to investing,” Kapusta says. “It starts with the fact that the language the investing industry has historically used is full of jargon.”
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 — and it can cost little to do it online from the comfort of your home.
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’re trying to get more women engaged with their retirement accounts and investments.
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.
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.
However, even when working women are putting money away for retirement, 51% say they’re not likely to save enough to retire comfortably compared to 44% of men, Bankrate’s retirement savings survey finds.
Women can miss out on hundreds of thousands of dollars when they don’t invest
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.
“That costs the average woman hundreds of thousands because they are not investing and getting that compound interest,” Green says. “Those are real numbers.”
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.
Women feel less confident about retirement planning — why that’s a problem
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?
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.
“They want to understand the risk that they’re taking and take a calculated risk — not that they don’t want to take any risk,” she says.
That makes women better long-term investors, but it can also prevent them from taking action if they don’t 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.
“They end up not making any action, which can be really detrimental versus making mistakes along the way,” North says.
Bankrate’s retirement savings survey suggests that most working women don’t 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’s compared to 55% of men who feel behind on their retirement savings.
4 ways that women can take action to start building wealth
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:
1. Get familiar with investing basics
You don’t have to be an investing pro to get started. North says women will often have an ‘all-or-nothing’ perspective with investing, but she wants women to know they can learn by taking a piecemeal approach.
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.
Once you’ve learned the basics, choose a retirement account to start investing.
2. Take advantage of free retirement accounts
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’s essentially free money on the table for your future self.
“Focus on learning about what your employer offers in the way of investing for retirement,” North says. “That should be your No. 1 focus because if you aren’t investing yet, you’re likely leaving money on the table by not getting that employer match.”
If you can’t 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.
3. Start investing early, even if it’s just a little bit
If there’s one piece of advice that several investing experts agree on, it’s this: Don’t try to time the market, and start investing as soon as possible — even if it’s just a few dollars a week.
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’s match and increase your contributions by one or two percent each year.
Taking your first step toward saving and investing, no matter how small it may seem, can lead to more financial “options and opportunities” down the road, according to North.
“You have the option to take a work break for whatever reason,” she says. “Opportunity in that you could retire early; you could start a business or you could do something different that’s not so beholden or traditional in the workforce.”
4. Have a long-term mindset and plan for a longer retirement
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.
That’s why it’s 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.
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