Taking Control: How Women Can Strengthen Their Financial Future

Recent findings from Transamerica’s Center for Retirement Studies’ Women’s Retirement Outlook survey highlight a persistent confidence and savings gap: just 63% of women feel confident they’ll be able to retire comfortably, compared to 75% of men. The data also reveals a meaningful disparity in retirement savings. Only 27% of women report having $250,000 or more in total household retirement accounts (versus 34% of men), while 22% of women have saved less than $10,000, or nothing at all.

Howeve, women are increasingly stepping into leadership roles when it comes to household finances, whether through career advancement, inheritance, divorce, or other life transitions. As women’s financial influence continues to grow, so does the importance of proactive, strategic retirement planning.

Below are practical steps women can take to strengthen their savings, build long-term confidence, and close the retirement gap.

Start Planning for Retirement:

A report by JPMorgan cites that women between the ages of 75–79 are three times more likely than men to be living in poverty, and widowed women are twice as likely to be living in poverty as their male counterparts.

Given women's longer life expectancy, it's crucial to prioritize financial security and growth for the future. Regular contributions to retirement accounts are paramount, as is considering high-yield savings accounts with daily compounding interest to maximize growth. Learn more about retirement planning essentials here.

Track Your Expenses and Pay Off Debt:

Familiarize yourself with your monthly spending habits and create a budget that will help you stay within your boundaries for maximum savings. Focus on minimizing and paying off your high-interest debt, even if you can only contribute a small amount over the minimum payment.

Create an Emergency Fund:

According to a study by U.S. News & World Report, nearly half of women surveyed (48%) said they do not have an emergency fund, compared to just one-third of men. The gap becomes even more evident when facing unexpected expenses: while 64% of men report they could cover a $1,000 emergency with savings, only 52% of women say the same. 

Building an emergency fund is a critical step toward financial security. Start by setting a realistic monthly savings goal and automating contributions if possible. Even small, consistent deposits can create a meaningful safety net, providing confidence and stability when unexpected expenses or financial challenges arise. Read more about emergency planning here.

Build Your Credit:

If you do not already have one, open a secure credit card to begin establishing credit. You can also become an authorized user on your significant other or a relative’s credit card account, which will allow you to receive good credit actions without liability for any charges. f you share financial accounts with a partner, make sure you are also building and maintaining credit independently. Establishing credit in your own name strengthens your financial foundation and ensures you have access to opportunities from loans to housing on your own terms.

Set Long-Term and Short-Term Goals:

Short-term goals may include setting aside funds to pay your bills each month, buying groceries, and paying for monthly subscriptions, while long-term planning encompasses comprehensive estate management. Estate planning safeguards your intentions, particularly in unforeseen situations like incapacitation. If you have children, consider options like establishing a 529 college savings plan and integrating it into your estate plan for seamless financial management. Learn more about achieving long-term financial success here.

By adopting these strategies and staying proactive, women can build financial stability, achieve greater autonomy, and create a brighter future for themselves and their families. Oppenheimer financial professionals can provide personalized guidance and insights to help you develop robust savings plans, stay informed, and navigate your financial journey with confidence and independence. Find one in your area here.