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When it comes to retirement for many women, expectations are not matching reality. Women face a challenging retirement landscape, shaped by systemic inequities and a patchwork, haphazard, do-it-yourself system that leaves far too many unprepared to enjoy their golden years.
The current retirement framework relies heavily on individual savings and investment decisions, placing an enormous burden on women—who often earn less, live longer, and face career interruptions.
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How can women rise above these challenges leveled against them and take control of their retirement plans? We talked with Cathy Mendell, founder, Theia Financial, to discuss how women can achieve their goals for retirement through flexible and personalized financial planning that utilize modern strategies and tailor these services to their individual needs.
Q: Are women at a disadvantage when it comes to retirement planning?
Mendell: Retirement in the United States is difficult for everyone, regardless of gender. Women may face unique challenges, but success comes down to individual effort, planning, and taking ownership of one’s financial future. It’s not about making excuses or waiting for external help—it's about taking control and doing the hard work needed to secure your financial future.Q: Why does the current retirement framework place an enormous burden on women?
A: It depends on personal circumstances, such as income level, career interruptions, or marital status. While women may live longer and face different realities if single or divorced, young couples today also struggle to save. The key is for individuals—regardless of gender—to understand their retirement goals early and take the necessary steps to achieve them.Q: How does the gender pay gap directly impact women's ability to save for retirement?
A: There’s a perception that men inherently earn more than women, but I believe that idea is becoming outdated. From my experience as an employer for 25 years, I’ve never considered gender when it comes to pay or saving for retirement. While gender-based pay disparities may have been more prevalent in the 1980s and 1990s, significant progress has been made in addressing this issue. The focus should not be on disparities but on individual actions to prepare for retirement. Financial success is about planning, discipline, and understanding where you need to get by retirement age, regardless of external factors like pay disparities.Q: How can women rise above these challenges leveled against them and take control of their retirement plans?
A: Retirement planning is a financial journey, and achieving your goals requires consistent effort and cumulative results over time. Women must take ownership of their financial journeys. The process requires consistent effort, starting with small steps, regardless of income level or stage in life. She points out that developing the habit of saving and making forward progress builds momentum. It’s not about one big event, like selling a house or waiting for a windfall—it’s about cumulative results and staying proactive.Q: How can advisors offer personalized financial planning that tailor services to their individual needs?
A: Effective financial planning is not about having a stack of investment statements but creating a comprehensive plan. Advisors should focus on answering specific questions, including income planning, investment strategies, health care, and ensuring that assets last throughout retirement. For women close to retirement, working with a qualified planner can help them transition from saving to securing income for the future. For those earlier in their journey, online resources can provide a starting point without incurring high costs.Q: How can employers help women be better prepared for retirement?
A: Employers can help employees prepare for retirement by offering resources such as 401(k) plans, matching contributions, and financial education. However, the individual ultimately has the responsibility to make the most of these opportunities. Employers can support them, but they can’t do the work for their employees.Related: 1 in 4 women retirees say retirement is ‘not what they expected’: How employers, advisors can help
Q: Should employers offer women a higher match, since there is a pay disparity?
A: I firmly believe that gender-specific employee matches would be inappropriate. Retirement planning should be based on individual contributions and goals rather than gender-based distinctions. The focus needs to remain on providing equal access and opportunities for everyone.Q: Should Congress do more for women to get them on track for retirement?
A: While legislative action can make a difference, women must take charge of their financial futures. Waiting for Congress to act is uncertain—empowering yourself is key to achieving your financial and retirement goals.© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Lynn Cavanaugh
Lynn Varacalli Cavanaugh is Senior Editor, Retirement at BenefitsPRO. Prior, she was editor-in-chief of the What's New in Benefits & Compensation newsletter. She has worked for major firms in the employee benefits space, Vanguard and Willis Towers Watson, as well as top media companies, including Condé Nast and American Media.
