Retirement planning should be straightforward. But for many professional women, it isn’t.
Even with a strong career, steady income and sound instincts, there are structural, behavioural and personal factors that make retirement planning more difficult for women than men. If you’ve been focused on building your professional life, it’s easy to assume the rest will fall into place—but the numbers tell a different story.
Here’s a closer look at six key challenges facing professional women regarding retirement and why forward planning matters more than ever.
1. Women Retire with Less—Despite Earning More Than Ever
Professional women are reaching senior roles in greater numbers, but this hasn’t translated into retirement equality. In fact, women typically retire with significantly less than men. The median retirement income for women over 65 is 32.6% lower than for men. That’s not just a gap—it’s a gulf.
Much of this comes down to long-term compounding. Lower average pay, fewer bonuses, and missed employer pension contributions all take their toll over decades. Women are also more likely to prioritise others—children, partners, parents—over saving for themselves. The result? A higher risk of poverty in retirement. One US study found that women are 80% more likely to be impoverished in later life than men.
The hard truth is this: success at work doesn’t guarantee financial security in retirement. It takes planning.
2. Career Breaks and Part-Time Work Come at a Cost
Even among high-performing professionals, career breaks are common. Maternity leave, eldercare, relocation, or burnout—whatever the reason, time out of the workforce can be financially costly.
In 2022, 14% of prime working-age women were full-time caregivers. Meanwhile, 21% of women were in part-time work, compared to just 11% of men. These gaps matter—not just in lost salary, but in lost pension contributions, employer matches, and investment growth. Many part-time roles also don’t come with access to retirement plans.
Catch-up strategies are essential for women who have stepped off the ladder, even temporarily. That means saving more when you earn, using available tax advantages, and structuring a plan that factors in future income gaps.
3. We Live Longer—And That’s Expensive
On average, women live around five years longer than men. Life expectancy for women now stands at over 83, and many live well into their 90s. That means more years without a paycheque—and more years needing income, healthcare, and possibly care support.
A woman retiring at 67 can expect to need 20+ years of income. If you’re used to spending £40,000 a year, that’s over £800,000 just to maintain your lifestyle—not counting inflation, healthcare, or unexpected costs.
Living longer is a privilege—but funding it requires a different level of planning. This isn’t just about saving more, but about investing wisely, structuring drawdowns efficiently, and managing longevity risk.
4. Too Few Women Invest with Confidence
Despite their capability, many women feel less confident about investing. According to Morgan Stanley, 64% of women have never invested, and only 60% feel confident about retiring comfortably, compared to 73% of men.
The consequences are clear. Money held in cash or overly conservative funds may feel safe, but it doesn’t grow fast enough to meet long-term needs—especially when inflation is factored in. Without growth, retirement goals remain out of reach.
The solution isn’t reckless investing. It’s informed investing. Women tend to be thoughtful and consistent investors once they get started—often outperforming men over time. What’s needed is education, strategy, and a plan built around real goals, not market hype.
5. Retirement Plans Often Don’t Fit Modern Careers
Many women move between countries, jobs, or employers—and traditional pension systems aren’t designed for this. Only 43.5% of working-age women participate in a retirement plan, and far fewer have access to flexible, portable options that fit a global or portfolio career.
High-earning professionals might assume that personal wealth and property will do the job—but without structure, even significant assets can be inefficient. Are your pensions consolidated? Do you know your retirement income gap? Have you protected your plan from currency, inflation and tax risks?
Modern careers need modern retirement plans—designed with mobility, flexibility and resilience in mind.
6. Access to Benefits Is Uneven—Especially at Senior or Self-Employed Levels
While 73% of civilian workers technically have access to retirement benefits, access doesn’t equal adequacy. Executive contracts often exclude pensions altogether. Bonuses may be generous but not pensionable. And self-employed women—including consultants and entrepreneurs—must set up their own savings vehicles.
Even if you’re earning well, if you’re not contributing regularly to a long-term retirement vehicle, you may be under-saving without realising it. uitable retirement savings tools are available, but they often require proactive setup, regular contributions and ongoing management.
Put simply, if your employer isn’t helping you build your retirement, you have to help yourself.
Final Thoughts: It’s Never Too Late to Plan
These challenges are real—but none are unmanageable. The key is to start where you are, build a strategy that reflects your values and lifestyle, and make informed decisions with the future in mind.
You don’t need to have all the answers. You just need a plan.
Let’s Talk About Your Future
If you’d like to examine your retirement options more clearly, I’d be happy to help. I offer a free, no-obligation consultation to discuss your situation and help you make informed choices without pressure or jargon.
Book your free consultation today and take the first step towards the retirement you deserve.
