Women and Financial Planning: What to Consider

Greater financial literacy enables women to manage their economic futures effectively. It enables women to make informed decisions about budgeting, investing, managing debt, and planning for retirement. This knowledge is particularly important considering the distinct challenges many women encounter, including career interruptions and longer life expectancies, both of which can significantly impact long-term financial security.  

Key Takeaways:

• Women control over $10 trillion in U.S. household financial assets, a figure expected to triple by 2030 due to intergenerational wealth transfer.

• Women generally make less money than men. Median weekly earnings for full-time salaried women are still just 83.6% percent of what men earn, according to a 2023 Bureau of Labor Statistics report.

• Women often provide unpaid caregiving, such as take time off from our careers to raise kids or caring for elderly parents, leading to reduced income and career interruptions, which can impact their long-term financial stability.

• Women outlive men by an average of five years, according to the CDC.

• Thoughtful financial planning can help women meet their goals and realize their personal vision of success.

Today, women are responsible for their families’ financial decision-making and hold the majority of consumer spending power. Despite systemic obstacles, women have become a true financial force, controlling more than $10 trillion in U.S. household financial assets. According to research by McKinsey & Company, by 2030, analysts expect that figure to triple, thanks in large part to the coming wave of intergenerational wealth transfer from Baby Boomers to succeeding generations. With that kind of economic power, women should be on top of their financial lives. However, that is not usually the case, especially in the wake of a pandemic and its accompanying economic fallout, which disproportionately affected women.

As of 2025, half of women (49%) don't have an emergency fund, compared with just 36% of men who don't. They also have lower balances: Among women who have an emergency savings, the median balance is $6,500. It is $11,000 among men. The gender gap in retirement confidence also persists, as 84% of men feel secure about their savings, compared to 73% of women. These numbers are disheartening and illustrate the need for a focus on women by the financial services industry. On an individual level, we can start to turn the tide through education, goalsetting, and planning.

Planning for the Challenges Women Face

Women have unique needs and obligations, and often differ from those of men, so we should be having candid conversations about money acknowledging that fact. Recognizing and addressing these disparities is crucial for fostering greater financial equality. Women can benefit from seeking out mentorship and networking opportunities within financial circles, as these connections often lead to valuable insights and support. Additionally, leveraging technology, such as budgeting apps and online investment platforms, can simplify financial management and empower women to make informed choices about their money.

Research shows women are more likely than men to help with unpaid personal care tasks, which can also lower their income. For instance, we may put our careers on hold or reduce our working hours to care for children and/or aging parents. Spending less time working can limit access to retirement plans and hinder career advancement and salary growth.

Women typically outlive men by about five years. Because of the career interruptions as mentioned above, that means many women may live longer on less income. It also means they will need to be able to make financial decisions on their own. Finally, women may not be taking full advantage of the investment opportunities at their disposal, or the potential for their assets to grow, as they are less likely to participate in the stock market.

Setting and Meeting Goals

It helps to think about money as a vehicle for realizing your personal vision of success. The stakes are too high not to take control of your finances, and thoughtful planning, you can garner the financial freedom to pursue your dreams, bring stability to your life and the lives of your loved ones, handle the inevitable obstacles life throws in your path, and contribute to the causes close to your heart. Sounds good—so where do you begin? Developing an effective money management strategy involves several fundamental steps:

1.     Decide what you want. This could mean defining or redefining your goals. If you have a partner, you can do this together. Consider both your short- and long-term personal and professional goals. During this process, you might ask yourself what being financially comfortable means to you. Even if it seems far away, you should begin to think about what an ideal retirement will look like, whether it is traveling the world or moving close to your grandchildren.

2.     Make your financial goals, especially retirement, a top priority. Retirement can be long, especially for women, so you need to save as much as you can as soon as you can. Take full advantage of a company retirement plan. Contribute at least up to the company match, and much more if possible. No company plan? Consider opening an IRA. Ideally, you will start saving for retirement in your twenties and put away about 10-15 percent of your annual salary (including any contributions from your employer). If you start later, that percentage goes up fast. For example, if you wait until age 40, you would have to save 20-30 percent of your annual salary. Many financial planners recommend that you anticipate living until 90-plus in your retirement planning calculations. If you're young, start now. If you're older, start now.

3.     Don't just save, invest. The top reason for women starting to invest was to grow their money and save for retirement. Participating in the stock market could be one of the best ways to grow your money. Of course you have to accept a certain amount of risk, but there's also a risk in being too cautious. Not investing in the stock market could mean missing out on gains that can help you achieve your goals. For a goal like retirement with a long-term time horizon, consider a diversified portfolio with the potential for growth. Plus, it helps for investors to be patient—and avoid the noise. That can mean keeping your money invested for the long term and riding out market swings. And the sooner you start to invest, the better, especially for retirement. Time in the market can be your most valuable asset.

4.     Don’t do it alone. In addition, for many people, working with a Financial Advisor is a great way to get help creating and implementing a wealth plan that takes your specific goals and circumstances into account at each stage of your financial journey. Talk to people you trust who are knowledgeable. Especially as your assets grow, consider working with a financial advisor. I think of a financial advisor sort of like a personal coach, someone to educate and guide you and keep you going when you might feel overwhelmed or tempted to call it quits. Don't be afraid to ask questions. A financial advisor can be there to help you look at the big picture, build a portfolio to match your goals and risk tolerance levels, and create a comprehensive financial plan.

In summary, women need to emphasize the importance of setting clear financial goals, creating a flexible saving and investment strategy, and involving family members in financial discussions. It highlights the value of using workplace resources and working with a Financial Advisor, preparing for unexpected events with an emergency fund, and prioritizing estate and healthcare planning. By taking proactive steps and open communication, individuals can confidently navigate their financial futures.

By regularly reviewing your plan, you can make adjustments as your circumstances evolve and as your goals shift. Remember to revisit your strategies after major life events, such as marriage, divorce, the birth of a child, or career changes, so your approach continues to align with your objectives. Staying proactive about your financial well-being helps ensure you’re ready for both anticipated milestones and unexpected challenges.

Illustration of women discussing financial planning