5 steps to bridge the retirement savings gender gap. 

There’s much talk about the gender pay gap for working-aged women versus men, with women earning $.83 for every $1 men earn, according to the AAUW, an organization that advocates for women.¹ But the disparity goes beyond this to retirement age, where women are usually less financially prepared for their golden years than their male counterparts.

This discrepancy is problematic due to women’s longer life expectancy. A study by the Brookings Institute says that after a lifetime of generally lower earnings, and more often putting their careers on hold for family reasons, women come up short in retirement.²

But women can and should catch up their retirement savings. Here are five ways to do it:

1. Invest in your workplace retirement plan. 

Women who previously were more concerned with capital than aggressive saving should invest fully in their employee retirement plan or 401(k). If you go part time due to childcare or family responsibilities or take time off like maternity leave, don't stop saving — even a reduced amount. And if you become ineligible to participate in your work plan because of part-time hours, open an IRA to save the maximum. In 2023, that's $6,500.³ What's more, if you're 50 or over, you can make catch up contributions that can help rev up savings — $7,500 for a 401(k) and $1,000 extra to your IRA.⁴

2. Learn more about retirement investing. 

Open a brokerage account, invest some money and get a feel for how it works. Invest in companies you care about or whose products you use or people you admire. Having a stake in something “personal" helps provide a connection between you and your investments besides money. Plus, you're likely to learn more when you follow the company news, understand how the product works, or track the company on social media.