Retirement

Why Women Outlive Their Money

Women live longer, earn less over a career, and often save less. Why those facts stack, and the decisions that can still move the math.

By Tyre Richards, BSHA, MBA · Published October 13, 2026

A woman with silver-streaked hair works through paperwork and a notebook beside a laptop and calculator at her dining table.

A woman who reaches 65 in good health has a long stretch of life ahead of her. That is good news. It is also the reason retirement math works differently for women, because there are more years to pay for and, on average, less money set aside to pay for them.

None of the facts behind this are secret. They just rarely get put side by side.

The numbers

Longevity. AARP reports that women live about five years longer than men, 81.1 years compared with 75.8, which raises the risk of outliving savings. Researchers at Georgetown’s Center for Retirement Initiatives found that when a married couple reaches 65, the wife outlives her husband by 11.5 years on average, partly because of age gaps between spouses. Many women spend a long stretch of retirement alone.

Income. According to AARP, women working full time have median weekly earnings 16 percent lower than men’s, a gap of roughly $10,000 a year, and women receive about $4,800 less per year in Social Security retirement benefits. Women are also 61 percent of all caregivers, which means more career interruptions, lower earnings, and fewer years of contributions.

Savings. A Transamerica Center for Retirement Studies survey found that median household retirement savings for women are $56,000, against $92,000 for men. For Gen X women, who are between 45 and 60 in 2025, the median is $77,000.

Caregiving. A Brookings analysis found that having a first child reduces a woman’s Social Security benefits by an average of 16 percent, and that a woman who leaves work to care for an elderly family member loses an average of $131,000 in lifetime Social Security benefits.

Health care. The 2025 Milliman Retiree Health Cost Index, as reported by a wealth-planning firm, estimates that a healthy 65-year-old woman could face about $313,000 in health care costs over retirement, compared with $275,000 for a man.

Why these facts stack

Any one of these is manageable. Together they build on each other. Time out of the workforce lowers pay and contributions. A longer life stretches a smaller pile across more years. Brookings estimates that for the same amount of wealth at 65, a woman can afford to spend about 7 percent less each year than a man, because her money has to last longer. And because women are more likely to be the surviving spouse, they often end up living on less Social Security income while covering a partner’s medical bills.

Some of this is structural, and no single woman can fix it alone. A good portion of it can still be changed by decisions made in the next few years.

Steady, informed decisions beat rushed ones, and Scripture said so long before any retirement study:

“The plans of the diligent certainly lead to advantage, But everyone who is in a hurry certainly comes to poverty.”

Proverbs 21:5 (NASB)

Social Security claiming

The Social Security Administration increases your benefit for each year you delay claiming past full retirement age. For anyone born in 1943 or later, the increase is 8 percent per year, and it stops at age 70. The Transamerica survey found that many people claim at 62, the earliest age, and take a substantial permanent reduction in their monthly check.

If you are married, there is one more piece that matters. A widow’s survivor benefit includes the delayed retirement credits her husband earned, so his claiming age can shape her check for decades. Delaying is not right for everyone, since it depends on your health, your other income, and what you need to live on. SSA’s online calculator lets you compare claiming ages with your own numbers.

If you are divorced

The Social Security Administration says that if your marriage lasted 10 years or more, you may qualify for benefits on your ex-spouse’s record. If your ex has not yet applied for retirement benefits, you generally need to have been divorced at least two years. While your ex is living, the divorced-spouse benefit is generally capped at 50 percent of his full-retirement-age benefit. If he dies, you may qualify for survivor benefits on the same basis as a widow. Claiming does not reduce what he or his current spouse receives. Remarrying can change your eligibility, so confirm the rules for your situation with SSA.

Investing

Morgan Stanley reports that in 2025 about 66 percent of women said they were actively investing, compared with 76 percent of men. Money that stays in cash for decades misses the growth that a longer retirement will need. You do not need to become a trader. You do need to know where your retirement dollars are and whether they are working.

Working longer and planning for care

Brookings points out that working longer gives you more time to save and shortens the stretch in which you depend only on savings. If you are in your caregiving years right now, ask what you can keep contributing to, even in small amounts, and whether any retirement benefits can continue while you step back.

Get your own numbers

The first useful step is a plain look at what you have. Pull your Social Security statement and check that your earnings record is accurate. Add up your retirement balances. Estimate what you spend in a typical year. With those three figures, a fee-only fiduciary planner can give you a real picture, and so can you.

Women who see the math in their 40s and 50s still have time to move it. The women who get hurt are the ones who never saw the whole picture.

The goal is not fear of the future. It is a plan you can rest in:

“Strength and dignity are her clothing, And she smiles at the future.”

Proverbs 31:25 (NASB)

Pause and pray

A question to sit with: Which number have I been avoiding, and what would it cost me to finally look at it?

A prayer for this week: Lord, thank You for every year You give me. Help me plan for them with wisdom instead of worry, look honestly at what I have, and trust You with what I cannot control. Amen.

Take this further

Want a place to start? The Midlife Investor Guide is free in the Guides & Tools library.

Sources

AARP Public Policy Institute. Women’s Financial Security and the Importance of Social Security
Georgetown Center for Retirement Initiatives. The Unique and Varied Challenges Women Face Planning and Preparing for Retirement
Brookings. How does gender equality affect women in retirement?
Transamerica Center for Retirement Studies survey, as reported by Yahoo Finance
Milliman 2025 Retiree Health Cost Index, as cited by Investably, When the Standard Financial Plan Doesn’t Fit a Woman’s Life
Social Security Administration. Delayed Retirement Credits
InvestmentNews. Calculating Social Security survivor amounts
Social Security Administration blog. Ex-Spouse Benefits and You and, for the 50 percent and survivor details, Zacks, Can You Claim Social Security Benefits From Your Ex-Spouse?
Morgan Stanley at Work. Retirement Planning for Women: Why the Stakes Are Higher

This article is for education only and is not financial advice. I am not a licensed financial advisor, and your situation deserves a conversation with one.