American women are taking a larger role in household finances and control 70% to 80% of all consumer spending. They control over half of the personal wealth in the United States.

Although women have made significant strides, they face many unique challenges. Generally, women feel less financially secure, knowledgeable and confident about the retirement process than men and are more likely to experience financial anxiety. Only 12% are “very confident” they will be able to retire comfortably. Women over 65 are 43% more likely to live in poverty than men the same age.

As a whole, women earn less than men. Studies have found median earnings for women who work full time are 82% of what men earn.

Women are more likely than men to leave their career or reduce their hours to care for children or the elderly. This dramatically impacts long-term income potential and career momentum. It also negatively impacts their Social Security benefit, pension benefits and retirement saving. Women will spend about 27 years in the workforce compared to 40 years for men.

A 2019 study by the National Center for Health Statistics found the average life expectancy for men is 76.1 years and 81.1 years for women. It is common for women to marry older men, making it more likely they’ll eventually be on their own.

Many women tend to focus more on day-to-day financial issues rather than long-term finances. They are less prepared for retirement; only 68% are contributing to a retirement plan vs. 81% for men. Many women are uncomfortable, intimidated or uninterested in their personal finances.

Women tend to be conservative investors and are more hesitant than men to invest in the stock market. A conservative portfolio will not earn the long-term growth needed to build a retirement nest egg.

This may be due to a lack of financial knowledge and confidence.

To become better prepared for retirement, educate yourself about investments, retirement planning and the impact of staying out of the workforce. Women often place too much focus on taking care of others rather than themselves.

Take care of yourself, focus on the future and prioritize saving for your retirement. Establish automatic contributions to your retirement plan to pay yourself first. Invest at least enough to earn your employer’s match and work toward maximizing your contribution.

Be an active participant in the investment and planning process. If you share finances, work with your partner to fully understand your financial situation and set financial goals. Work together on decisions regarding Social Security benefits, survivor benefits on pensions, beneficiaries and insurance to ensure both of you will be secure on your own.