Planning for retirement may seem like it’s years or even decades away. Yet planning and saving for retirement should start as early into your working years as possible. This is especially true for women since they have unique considerations.
According to the U.S. Department of Labor (DOL), women are more likely to work in part-time jobs and have less access to retirement plans. That is partly because the responsibility of childcare (and elder care) still mostly falls on women, making it more difficult to have a traditional 9-5 job.
💰💸Don’t miss the move: SIGN UP for TheStreet’s FREE Daily newsletter💰💸
Ultimately, caregiving responsibilities, which are often unpaid, mean women work fewer years outside the home and contribute less to Social Security and retirement plans. In fact, just 43.5% of women participate in any type of retirement savings, according to the DOL.
Fidelity finds women are determined to save more money
Fidelity Investments just published a new report looking at the current state of women’s financial health. It’s not as dire as the DOL data suggestions, but there is still room for improvement.
Related: Suze Orman has plain-spoken financial advice for women
According to the company’s 2025 Financial Resolutions Study, women are feeling optimistic as they enter 2025, with 61% saying they will be better off financially in 2025 than they were in 2024. 68% of women say they have a plan to reach their financial goals, and 80% say they plan to build up their emergency savings. Looking to the future, women’s top financial resolutions for 2025 are to save more money (46%), pay down debt (41%), and spend less money (33%).
QUOTE FROM FIDELITY TK ELLIE
While most women are focused on short-term financial goals this year, younger generations in particular plan to increase their annual retirement savings contribution in 2025 (48% of Gen Z, 45% of Millennials).
Women face unique considerations when planning for retirement, partly because caregiving responsibilities fall disproportionately on them.
For women, retirement doesn’t necessarily mean not working at all
Even women who describe themselves as retired are still working, at least part time. Fidelity also shared the following trends the company is seeing for women:
50% of women who retired in 2024 took a phased approach to retirement by working part-time, taking on less responsibility, or transitioning to more flexible work, compared to only 19% of women 20 years ago. Among women retirees, nearly half are currently working, have worked, or are thinking about working in retirement. Women are also significantly more likely than men to transition to retirement by working reduced hours or days.
Healthcare and Medicare costs are top concern for women
Among the many concerns women have as they approach retirement is the cost of healthcare. Healthcare costs in the U.S. can be an enormous financial burden, even for people who qualify for Medicare.
The Fidelity report found that women can expect to spend an average of $175,000 on health care costs and medical expenses throughout retirement, which is more than 10% higher than what men can expect to pay and up nearly 17% since 2019.
Related: Jean Chatzky has blunt words on a 401(k) and retirement mistake to avoid
Last year, Fidelity looked at healthcare costs for Americans and reported that for women who feel worse about their finances today than they did five years ago, encountering unexpected healthcare costs was one of the top contributing factors.
Women juggle caregiving responsibilities
Women caregivers continue to report higher levels of financial turmoil, with 41% describing their relationship with money as “stressful.” Their top concerns going into 2025 are unexpected expenses (41%), inflation’s impact on day-to-day expenses and savings (40%), and economic uncertainty/recession (32%).
More on retirement strategies:
Tony Robbins warns Americans on Social Security mistake to avoidDave Ramsey has blunt words on Medicare for retired AmericansSuze Orman offers candid advice on Social Security for retirees
Caregiving responsibilities impact women into retirement as well – recent research shows women retirees are three times more likely than men to say they left the workforce to help care for loved ones.
Despite these challenges, most women caregivers are looking to the future, with 81% planning to build up their emergency savings, aligning with the top resolution for all women who say they plan to save more money in 2025.
Related: Veteran fund manager unveils eye-popping S&P 500 forecast
