Twenty-six percent of the women surveyed for “Women, Money, Confidence: A Lifelong Relationship,” a 2022 Bank of America study conducted in partnership with Ipsos, say that they wish they had invested more of their money and 44% say they wish they had started saving and investing sooner. The study also found that a third of women don’t feel they have the knowledge to be more involved in investing. One potential answer? “Connect with a female financial role model. Just talking about money with family, friends or a trusted resource can be powerful and empowering,” says Sabbia. “Talk can build comfort and confidence, and lead to action. It’s important to just start, even if it’s with a small amount of savings. The longer you wait, the tougher it is to catch up.”

To get the conversation going, you might start an investing book club or money circle discussion group. A money circle group gives you and your friends the opportunity to share financial goals and ideas, ask questions and learn from one another.

You can also try creating a stock watch list online. Check the performance of the stocks you’ve selected on a weekly basis. It costs you nothing to do it — and it’s a great way to begin to get a sense of how the stock market works.

Ideally, you should try to save at least 15% of your salary every year. This is particularly sound advice for women, who tend to live longer than men and can be at greater risk of outliving their assets. But the wage gap can make saving difficult. In 2021, women earned 86% of what men earned, according to a Pew Research Center analysis.¹ If you’re earning less, you’re likely to save less as a result. For more insights, read “Women and Life-Defining Financial Decisions.”

Sabbia recommends sharpening your negotiating skills and then asking for a raise, if you think you deserve one. “Try to put as much away as you can toward your retirement — you’ll be glad to have the financial resources you need when you reach retirement.”

If 15% isn’t possible, at least see if you can contribute enough to qualify for the full 401(k) match, if your employer offers one. Many employers require you to put in from 4% to 6% of your pay to get the maximum match. “It’s like free money,” notes Sabbia, “so do your best to capture it.” And then try to increase your savings a little every year — whenever you get a raise, increase the amount you put away for your future.

This is a tricky one. It’s certainly appropriate for you and your spouse to have joint accounts and a mortgage in both your names. And a separation of money can trigger feelings that one partner doesn’t trust the other. But generally, it’s smart to keep your retirement account, a bank account, and at least one credit card — plus a utility bill — in your own name.

There are several reasons for the “me, you and us” approach, says Kirstin Hill, chief operating officer of Merrill Lynch Wealth Management. It’s important to preserve your access to your own spending money. It’s also not unusual for couples to have different investing styles — you may prefer to invest more aggressively than your spouse, for instance — and having your own brokerage account allows you to express that style. It’s critical to maintain a financial identity in your own name for another important reason: Should the unthinkable happen and you divorce or become widowed, having a solid credit history and financial accounts in your name can help smooth the way as you transition to a solo financial life again.

Chances are you can, as long as you and your spouse have planned ahead financially. If you’re thinking of taking a career break, it’s a good idea to sit down with an advisor and discuss the impact that relying on one income instead of two might have on your family’s finances. Keep in mind that during that period you won’t be socking away money for retirement through an employer plan. What you can do, says Hill, is have your spouse contribute to a spousal IRA instead. Staying in touch professionally by attending conferences or consulting can help if or when you decide to reenter the workforce, she adds.

“It’s a good idea to work with someone who has experience dealing with the financial issues that concern you — and who can help you articulate your goals and priorities,” says Sabbia. You want someone with whom you can talk openly about your life, not just your money.

A good advisor will understand your whole picture — your caregiving demands, your career, your financial goals (which might be different from your partner’s), your philanthropic interests and your risk tolerance.

Interview a couple of advisors to find one you trust and feel comfortable with. Remember: You’re interviewing them, not the other way around. Print out this checklist, “7 Questions Every Advisor Should Be Able to Answer,” to use as a guide during the interview process.

Although the “Women, Money, Confidence: A Lifelong Relationship” study found that saving for retirement tops the list of women’s financial goals, a fifth of women approaching retirement say they do not have a financial plan. The study also found that 32% of all women view financial independence as being able to support their families. That number rises to 39% for women ages 40‒54. While taking care of your family is important, you shouldn’t shortchange your future self. A 2019 Bankrate survey found that 50% of Americans say they are sacrificing or have sacrificed their own retirement savings to help their adult children financially, by paying for prolonged education, for example, and other expenses.² Remember, your child can take out loans for college — but no one is going to lend you money to fund your retirement.

Ask your financial advisor — or find an online calculator — to help you estimate how much you need to save for both your own and your children’s goals. Then consider opening a traditional or Roth IRA, if you qualify, and start a tax-advantaged 529 account, as well. Even if you start out gradually, make your savings automatic. Split your raises between your retirement and 529 plans. If you can contribute to only one, make your retirement your priority.

The 529 money can be withdrawn tax-free for education costs, and you may be able to get a state tax deduction for contributions, depending on where you live. “These state-sponsored accounts let you invest in portfolios that are made up of stocks, bonds or money-market securities, offering the potential for tax-free appreciation over the years,” explains Richard Polimeni, head of Education Savings Programs at Bank of America. Check out “Could a 529 Education Savings Plan Affect Financial Aid?” and “Traditional or Roth IRA — Which Might Be Right for You?” for more insights.

The financial implications of divorce can be significant for women: According to a report from the U.S. Government Accountability Office, women’s household income fell by 41% following a divorce or separation after age 50, while men’s household income dropped by only 23%.³ Even if things are just starting to get rocky, it’s a good idea to seek advice from an attorney specializing in matrimonial law.

Legal issues and conventions around divorce vary widely from state to state, so don’t rely on advice from your friend across the country. You might consider talking with a financial advisor, who can help you figure out how much money you have and how much you’ll need going forward, suggests Hill.

Also, don’t forget about your and your spouse’s retirement accounts. They’re probably worth far more to your future financial security than, say, your home, so be clearheaded about how you divvy them up. For more insights, read “Divorce in Mid-Life: Fresh Starts, New Financial Challenges for Women.”

When it comes to caring for sick or elderly family members, women are significantly more likely than men to become caregivers. And this can come with a hefty price tag — $1.38 billion (compared with $482 million for men) in lost wages from 2009 to 2018.⁴ For some, caregiving can also be a cause of early retirement.

To ensure that you’re able to handle the responsibilities of caregiving without sacrificing your financial security, “talk to your family to lay out a plan, assess your current financial situation and don’t be afraid to ask your family and financial advisor for help,” suggests Cynthia Hutchins, director of Financial Gerontology at Bank of America. For more insights, check out The Caregiver’s Financial Guide.

A large number of women are working in full-time jobs well into their 60s and even their 70s, according to Women Working Longer: Increased Employment at Older Ages, edited by Harvard University professors of economics Claudia Goldin and Lawrence F. Katz.⁵ In fact, the U.S. Bureau of Labor Statistics reports that 22% of women ages 65–74 were part of the labor force in 2020, and that participation rate is projected to reach 28% by 2030.⁶

“If you enjoy your work and are up to it physically, it can allow you to keep making money, saving in retirement accounts and avoiding pulling out your savings for living costs,” says Hutchins.

Plus, working longer may also allow you to keep getting employer-supplied health insurance —helping you postpone using your savings to cover health costs. A bonus: Studies show that the social and mental engagement of work is mentally and physically beneficial.

“Because many women are living into their 90s — or beyond — it’s more important than ever to maximize Social Security benefits,” says Sabbia. You can claim reduced benefits as early as age 62. But for each year you wait after your full retirement age (between 66 and 67, depending on when you were born), your monthly benefit increases by 8% until you reach age 70. So, if you can afford to hold off, you probably should.

That said, everyone’s situation is different, and it pays to think through all the options. Each spouse in a couple, for instance, may be able to claim benefits based either on their own work record or on 50% of their spouse’s benefits. “For couples with large differences in earnings, claiming your spousal benefits may be better than claiming your own,” says Sabbia. In cases where both spouses receive benefits, when one partner dies, only the higher of the two benefit amounts continues as a survivor benefit. Start the process by viewing your earnings record and projected benefits at the Social Security website. For more insights, check out “Women’s Guide to Social Security.”

A 43-year-old woman can expect to spend nearly $200,000 more in healthcare premiums than her husband during retirement, according to a 2020 study by HealthView Services, a producer of healthcare cost projection software.⁷ What’s more, research from the Urban Institute estimates that 75% of 65-year-old women will require long-term care at some point in their lives, compared with 64% of men.⁸ So having a plan in place to cover your future medical costs is a good idea.

Account for them in your overall retirement planning and investment strategy, says Hutchins. “You can also consider opening a health savings account (HSA), if you haven’t already done so, for the tax advantages they offer,” she adds. Once you file to begin to receive Medicare payments, you’ll no longer be able to contribute to an HSA, but the funds invested in the account will continue to have the potential for growth, to help you pay for eligible healthcare expenses. For more insights, check out “Have You Saved Enough for Future Healthcare Costs?”

Women are about 3.2 times more likely to become widowed than men, according to the U.S. Census Bureau.⁹ “While it’s difficult to prepare for the emotional impact of losing your spouse, there are steps you can take now, as a couple, to ensure that you are financially prepared for the next phase of your life,” says Hutchins. “Make sure you both have easy access to all financial accounts and important papers. Create a will, assign power of attorney and confirm the beneficiary designations on your insurance and retirement plans.”

Finally, take heart: Often, following the initial stages of grief, widows experience a period of transformation, finding new purpose and interests — as well as the courage and resourcefulness they may need to move forward. For more tips and insights, print our checklist “The Finances of Widowhood: Plan Ahead to Help Your Spouse Manage Loss” and read “Widowhood: The Loss Couples Rarely Plan for — and Should.”