Key Challenges Women Face that Impact Their Financial Security

Planning for retirement is difficult at any age, but it can be especially challenging for women ages 50 to 64, who are often juggling work, caregiving responsibilities, and rising health expenses associated with an increase in health care needs. These years are also often women’s peak earning years, making this period a critical window to build savings and strengthen financial security. Elder Index data show that half of older adults over age 65 living alone and 20% of older couples cannot afford the basic needs, like housing, food, and health care, without assistance. However, this burden falls especially hard on women, who are more likely than men to live in poverty. These data points show why tackling these challenges early is essential for long-term financial stability.  

How Women are Affected Over Time 

Economic security challenges for women often begin before retirement and compound over time, making it critically important to address the women’s financial needs earlier. Several key factors impact financial stability for women.

Lower lifetime earnings. Women are more likely than men to work in lower-paid sectors or in part-time roles that offer limited retirement benefits. They are also more likely to step away from paid work to provide caregiving and have fewer opportunities for advancement, which can reduce lifetime earnings and savings. A 2025 Transamerica Institute study found that women workers saved a median $3,000 in emergency funds, compared to $10,000 for men. Women age 65 and older (46%) are also more reliant on Social Security as their retirement income than men (38%). As a result, more than half of women age 65 or older who live alone are economically insecure.

Longer lifespans. Because women live longer than men on average, they often need their savings and income to last for more years, with 47% were worried about having enough money to live comfortably in retirement. Women’s greatest retirement fear is outliving their savings, and two-thirds of women ages 50 to 64 do not feel confident their savings will last through retirement. As a result, many women plan or expect to work after the traditional retirement age, either by necessity or preference. The U.S. Bureau of Labor Statistics projects that the number of people age 75 and older in the labor force will nearly double by 2030. For some, this “unretirement” reflects vitality and purpose; for many others, it reflects financial uncertainty.  

Delayed or skipped health care. When asked if there was a time they or a member of their household did not seek care due to cost in the last three months, 26% of women ages 50 to 64 responded yes. Women ages 50 to 64 are more likely than older women and men to delay or forgo needed health care and medications, with 38% citing cost as a driver. Over time, these delays can worsen health conditions and increase financial strain. Transamerica Institute reports that women are concerned about the prospect of losing their independence or being unable to afford long-term care. For the nearly 25% of women ages 50 to 64 who are uninsured, the challenge is even greater, limiting access to health-related resources.  

Increased caregiving responsibilities. About 43% of women have served as caregivers, and more than 85% have adjusted their work lives as a result, either by reducing hours or leaving the workforce altogether. Caregiving can play a significant factor in future finances, such as lower lifetime earnings, reduced retirement contributions, and fewer Social Security credits. Women are also more likely to continue caregiving into older age, whether supporting spouses, adult children, or grandchildren. The U.S. Department of Labor reports that 1.3 million women are the primary caregiver to grandchildren.  

Opportunities to Strengthen Women’s Financial Security

The years leading up to retirement offer a variety of opportunities for policymakers and other interested stakeholders to improve women’s financial security. Cross-sector approaches are particularly promising, since women’s retirement readiness is shaped by challenges that no single sector can solve on its own. Examples of strategies include:

• Pursue multisector plans for aging (MPAs) that connect aging, housing, caregiving, workforce, and health care policy. MPAs help to address the overlapping pressures that shape women’s financial security, including caregiving, housing, and health care. As of March 2026, all states implementing MPAs include a focus on either economic security or affording aging, as well as housing access and affordability. States like Maryland, Minnesota, and North Carolina are exploring financial literacy opportunities for people across the lifespan, recognizing that financial education starts early. In 2025, North Carolina commissioned the Institute for Women’s Policy Research to produce a report examining the needs of women in the state and outlining recommendations to better support them. Missouri is exploring pathways to expand employment opportunities for older adults. Pennsylvania recently announced its Housing Action Plan, which includes strategies for addressing housing costs. As policymakers implement their state planning efforts, they should consider initiatives that support the needs of women age 50 and older. 

• Explore long-term care insurance options that help people prepare for the cost of care later in life. For example, Washington State developed the WA Cares Fund, a first-in-the-nation public long-term care insurance program that allows both full- and part-time workers to contribute and, if eligible, access benefits beginning in July 2026. The program offers a roadmap for other states interested in improving supports for women, who are more likely to need long-term care over a longer period. By improving access to these supports, states can help reduce financial strain and reliance on Medicaid after personal resources are depleted. The Women’s Institute for a Secure Retirement created a resource guide for women planning for long-term care.  

• Address the financial strain of unpaid caregiving through policies that offset economic losses. Because women are more likely to reduce work hours, leave jobs, or spend their own money on caregivers, states can pursue strategies to offset these financial impacts. Options such as tax credits, respite services, and workplace flexibility can help limit the economic strain caregivers face. Several states, including Georgia, Missouri, Montana, North Dakota, New Jersey, and South Carolina, have introduced tax credits for unpaid caregivers to cover out-of-pocket caregiving expenses. Other states, such as Minnesota and Wisconsin, have developed resources on workplace strategies to better support caregivers and employers. Together, these strategies can help women and other caregivers stay connected to the workforce and preserve their income and savings as they approach retirement. 

Women ages 50 to 64 face a set of interconnected challenges, but those same connections create opportunities for action. With intentional cross-sector policies, more coordinated systems, and targeted supports, states and communities can help build stronger financial security for women later in life.