Building & Protecting Long-Term Wealth: A Retirement and Legacy Guide for Women
While women’s control of global wealth continues to increase, they face unique challenges as this shift occurs- including a persistent gender pay gap, longer life expectancies than men, and career interruptions for caregiving.
- Women control a growing share of global wealth, projected to reach $34 trillion in U.S. assets by 20301 becoming the primary decision-makers for significant family wealth
- Yet the median retirement savings for American women is about $50,000, which is significantly less than men3.
Women are positioned to foster the transfer of generational wealth, yet face challenges like these that make a typical approach to wealth management insufficient. In this piece, we’ll cover actionable strategies and professional insights women need to navigate retirement and legacy planning with clarity, confidence, and authority.
Why Women Face a Unique Retirement Challenge
The challenges outlined in the table below make women's retirement planning fundamentally different, not necessarily harder, but require a more specialized approach.
- Longevity: Women typically live five years longer than men, requiring assets to sustain a longer retirement period3. Financial plans must account for 30+ years in retirement, emphasizing sustainable withdrawal rates and inflation protection.
- The Pay Gap: Women earn approximately 81 to 85 cents for every dollar earned by men, limiting lifetime savings potential and compounding effects2,4. The planning priority: maximize contributions to retirement accounts and strategically invest to counteract lower lifetime earnings.
- Career Gaps: Caregiving responsibilities often lead to interruptions in earnings and employer-sponsored retirement contributions5. The planning priority: take advantage of catch-up contributions and spousal IRAs to bridge savings gaps and stay on track for retirement.
Longer retirement + lower contributions + compounding shortfall = a very real savings gap that needs proactive planning in order to close.
Savings Strategies to Close the Gap
With the median retirement savings for American women being notably less than men at about $50,000, women can leverage savings tools to help close this gap:
- Catch-Up Contributions: If you are over the age of 50, the IRS allows additional contributions to 401(k)s, IRAs, and similar accounts. This can accelerate savings as retirement approaches.
- Spousal IRAs: A higher-earning spouse can fund an IRA for a lower- or non-earning spouse, helping them build independent retirement wealth in their own name
- Employer Retirement Plans: Fully utilize plans like 401(k)s, especially with employer match, for boosts
- Health Savings Accounts (HSAs): Triple-tax-advantaged accounts for future healthcare costs, including Medicare gaps; funds can be invested for long-term growth
Social Security Optimization – A Decision That Compounds for Life
While historically underutilized by women, Social Security claiming is becoming an increasingly more important topic in women’s retirement planning, as it can have high impact based on your unique circumstance.
- Delayed Claiming: Delaying up to age 70 can result in an approximately 8% annual increase6, which can boost both individual and survivor benefits. The impact here can be particularly valuable given women's longer life expectancies
- Spousal Benefits: Claiming based on a spouse’s record if higher than your own benefit
- Survivor Benefits: Switching to a deceased spouse's higher benefit when applicable
- Addressing Earnings Gaps: Strategies can help mitigate the impact of career interruptions on your lifetime benefit calculation
These decisions are permanent and the right choice depends on your health, income needs, and household strategy. Partnering with a financial advisor on your Social Security options while retirement planning is a great way to ensure you’re optimizing your full potential in this area.
Healthcare and Long-Term Care
With longer life expectancies, women must plan for healthcare and long-term care costs, and these costs are often underestimated or ignored entirely by retirement plans. Consider the following areas to focus on as you plan:
- Understanding Medicare Gaps: Supplemental insurance, Medicare Advantage, and prescription drug coverage. Medicare alone is rarely sufficient in covering all of your medical needs.
- Long-Term Care Insurance: Coverage for nursing home, assisted living, or in-home care.
- HSAs for Medical Expenses: Tax-advantaged savings that can be invested and used strategically to cover healthcare costs in retirement
Healthcare and long-term care costs are a retirement reality that every financial plan should include. The earlier they're addressed, the more options you have.
Estate Planning Essentials – The Documents Every Woman Needs
Succession planning is more than asset distribution, it’s a way to ensure the preservation of your life's work, values, and vision. For women, often primary caregivers, estate planning ensures continuity, protects loved ones, and safeguards their future. A strong succession plan integrates legal, financial and personal considerations. Common estate fundamentals you should have on hand include the following documents:
- Last Will and Testament: Dictates how your assets will be distributed and names guardians for minor children
- Revocable Living Trust: Offers greater control, allowing assets to be managed for your benefit during your lifetime and then distributed to beneficiaries upon your passing, often bypassing the probate process entirely. This also provides privacy and can expedite asset transfer
- Durable Powers of Attorney: For both finances and healthcare, ensures that trusted individuals can make decisions on your behalf if you become incapacitated, preventing potential legal battles and ensuring your wishes are honored
At its core, estate planning is about preserving your life's work, values, and vision for the people and causes you've fostered throughout your life.
Tax-Efficient Legacy Strategies
Strategic planning can significantly mitigate tax burdens, preserving more wealth for future generations or philanthropic endeavors. The strategies below are advanced, and require thoughtful consideration and professional guidance to properly implement:
- Annual Gifting: Allows you to transfer up to $19,000 per recipient in 2026 without incurring gift tax, effectively reducing your taxable estate over time
- Generation-Skipping Trusts (GSTs): Can transfer wealth to grandchildren or later generations, and many even bypass a generation's estate tax entirely
- Charitable Remainder Trusts (CRTs): Receive income for life from assets, with the remainder going to charity upon your passing, this offers both tax benefits and philanthropic impact
Working with the right financial advisor can help identify which tools are appropriate for your situation.
Asset Protection & Family Communication
When it comes to legacy planning, the human side of the equation is easy to overlook, but it's arguably one of the most important parts.
- Proactive asset protection: Irrevocable trusts remove assets from your taxable estate and protect them from creditors, though they offer less flexibility than revocable trusts. Appropriate insurance policies, such as long-term care insurance and umbrella liability policies, provide additional layers of protection, ensuring your wealth remains intact for its intended purpose
- Blended family and complex dynamics: Navigating financial complexities from marital changes or blended family dynamics requires proactive planning to ensure clarity and fairness
- Family communication: Discuss your legacy goals and wishes with key family members. Open communication helps prevent misunderstandings and foster a shared understanding of your intentions
Proactive measures are crucial to protect your estate from unforeseen challenges, and taking the time to establish, review, and update your plans better ensures your wishes will be honored.
Building a Secure and Empowered Future
Financial planning should grow and adjust with each stage of life. By proactively addressing retirement and legacy planning, women can build a financially secure and empowering future, and having the support of a trusted team behind you can make all the difference. Partnering with a trusted financial advisor ensures your plan is personalized and adaptable, no matter what life brings.
For a deeper dive, including a practical checklist you can use to assess your readiness, download our full Empowering Women's Wealth Guide. Then, when you're ready to take the next step, schedule a call with a Savvy advisor today.
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References
[1] The new face of wealth: The rise of the female investor - McKinsey (2025) [2] Investing for Women: How to Close the Wealth Gap? - American Century (2025) [3] Closing the Confidence Gap: How Young Women Can Build Investment Courage - HBKS Wealth (2025) [4] Gender Economic Inequality - Inequality.org (2024) [5] Spotlighting Women's Retirement Security - Treasury.gov (2024) [6] Social Security Administration. "Delayed Retirement Credits." SSA.gov.
Material prepared herein has been created for informational purposes only and should not be considered investment advice or a recommendation. Information was obtained from sources believed to be reliable but was not verified for accuracy. All advisory services are offered through Savvy Advisors, Inc. (“Savvy Advisors”), an investment advisor registered with the Securities and Exchange Commission (“SEC”).
