The Retirement System Is Rigged Against Women. Here’s Proof.

Even in 2025, the retirement income gap between men and women remains significant. Women tend to live longer yet retire with far fewer resources — on average, 30% less income than men, according to Investopedia.

To help bridge that gap, some women are turning to simple ways to earn extra income from home to stretch their budgets and boost financial flexibility in retirement.

Poverty Still Threatens Retired Women

Women face significantly higher poverty rates than men after age 65. According to a 2024 report by the White House Council of Economic Advisers, older women are about 25% more likely than older men to live in poverty.

These numbers reflect a harsh reality. Many women retire after decades of balancing careers and caregiving responsibilities, only to struggle with meeting basic needs.

Daily Costs Put Extra Pressure on Women

Inflation continues to hit retired women harder. A University of Michigan poll shows women in fair or poor health and those with lower incomes are the most likely to cut back on essentials like food and medicine.

A report by Independent Age supports this: women over 65 are more likely than men to reduce spending on necessities such as heating and clothing.

The most recent Social Security cost-of-living adjustment (COLA) of 2.5% has offered limited relief. Since women receive lower monthly checks ($1,638 compared to $2,020 for men), the increase does little to offset their greater financial vulnerability.

Caregiving Comes at a Cost

Caregiving remains one of the most significant factors contributing to the retirement income gap for women. A 2025 Nationwide study found that 67% of female investors said caregiving affected their careers. Nearly one in five reported they were unable to save for retirement because of caregiving responsibilities.

Women often take on part-time jobs, leave the workforce early, or reduce their hours to care for family members. These decisions lead to lower lifetime earnings, smaller retirement contributions, and reduced Social Security benefits.

Outdated Policies Keep the Gap in Place

Despite growing awareness of the issues, existing systems fail to reflect the career paths and caregiving realities many women face. Pay disparities continue to widen the gap: according to a report by the Census Bureau, full-time working women earn 84 cents for every dollar earned by men. This difference accumulates over a lifetime, reducing savings and Social Security income.

Pandemic-related disruptions also widened this gap. Many women left their jobs to care for children or elderly relatives, further delaying retirement planning.

Smart Moves Women Can Make Today

Women can take proactive steps to improve their financial security and retirement outcomes, especially in the absence of timely policy reforms:

• Consider earning income in retirement. Part-time work, consulting, or turning a hobby into income can ease financial pressure and offer a sense of purpose.
• Explore catch-up contributions. If you're over 50, take advantage of increased contribution limits for IRAs and 401(k)s to help bridge savings gaps.
• Consult a financial advisor. A professional can tailor strategies to your unique life history, especially if your career was non-linear or impacted by caregiving.
• Make the most of Social Security. Delaying benefits until full retirement age, or even age 70, can significantly increase your monthly income.
• Investigate caregiving-related support. Many states offer tax incentives, stipends, or benefits that recognize unpaid caregiving work.
• Tap into trusted community networks. Local nonprofits and senior resource centers may provide free workshops, financial coaching, and emergency aid for housing, utilities, or healthcare.

What Policy Changes Are Still Needed

Closing the retirement income gap for women requires bold steps:

• Create caregiving credits in Social Security to recognize unpaid labor.
• Enforce fair pay laws to ensure women are compensated equally.
• Develop inclusive retirement tools designed for non-linear career paths.
• Expand affordable long-term care options to reduce financial strain.

Without these changes, the cycle of retirement insecurity will continue. But with the right tools, advocacy, and planning, women can gain more control over their futures and retire with the dignity they’ve earned.

Don’t Wait for the System to Act, Take Charge Now

There is no single solution to closing the retirement income gap for women. But progress is possible when awareness leads to action. Retired women and those approaching retirement can protect themselves by staying informed, using every available resource, and advocating for their needs at the local and national level.

Retirement should be more than numbers on a page. It should be a time of stability, dignity, and peace of mind. That future starts with knowing your worth and taking steps to safeguard it.