---
title: The Gender Pay Gap and It's Impact on Women's Personal Retirement
description: Much of the focus on gender equality is on compensation differences as well as the lack of equal opportunity in leadership positions for women. The social aspects of these issues can overtake the resulting dilemma that women face in retirement.
image: https://blog.birchwoodfp.com/hubfs/personal%20retirement%20planning.jpg
---
[](https://www.birchwoodfp.com/)
Phone: [952-885-9088](tel:19528859088)[](https://cta-redirect.hubspot.com/cta/redirect/3811900/47770b11-5936-41e0-b9cf-9b391581cd7a)
Phone: [952-885-9088](tel:19528859088)
[](https://cta-redirect.hubspot.com/cta/redirect/3811900/47770b11-5936-41e0-b9cf-9b391581cd7a)
# Perspectives
- Share
- [**](https://www.facebook.com/sharer/sharer.php?u=https://blog.birchwoodfp.com/gender-retirement-gap)
- [**](https://twitter.com/intent/tweet?url=https://blog.birchwoodfp.com/gender-retirement-gap)
- [**](https://plus.google.com/share?url=https://blog.birchwoodfp.com/gender-retirement-gap)
- [**](https://www.linkedin.com/shareArticle?url=https://blog.birchwoodfp.com/gender-retirement-gap)
- [**](https://pinterest.com/pin/create/button/?url=https://blog.birchwoodfp.com/gender-retirement-gap&media=https://cdn2.hubspot.net/hubfs/3811900/personal%20retirement%20planning.jpg)
- [**](mailto:?body=https://blog.birchwoodfp.com/gender-retirement-gap)
# The Gender Pay Gap and It's Impact on Women's Personal Retirement
[Steve Dixon, CFA® CSRIC®](https://blog.birchwoodfp.com/author/steve-dixon-cfa)
May 16, 2018 11:23:00 AM
Gender equality in the workforce is not a new topic, but one that requires persistent discussion and influence in an effort to close the gap that stubbornly remains. Much of the focus is on compensation differences as well as the lack of equal opportunity in leadership positions. The social aspect can overtake the resulting dilemma that women face in retirement. In a report published last year1, TIAA outlined the many challenges women face in retirement as a result of earning less, working less, taking less investment risk, and living longer.
### Financial Insecurity
Much has been written about the gender pay gap, including speculation on the reasons behind its persistence. The fact is that the gender pay gap and its myriad consequences for women in retirement are real and manifest differently for each individual. For some, it leads to a persistent sense of financial insecurity. This may manifest in a higher allocation to low yielding investments. A study by Cogent Reports in 2014, cited in the TIAA report1, shows that on average men hold 5 percent less in cash investments than women and about 5 more in stocks and mutual funds.
Combine the lower expected long-term returns of a more conservative investment allocation with the fact that women tend to outlive men and it’s no wonder why many women worry about running out of money. As we all live longer, our time in retirement has extended. Without a sufficient level of risk in our investment portfolio, we may just simply be replacing market risk with longevity risk, or the risk that we do outlive our money.
### Men vs. Women: Who is the More Successful Investor?
It is important to note that many studies point to women as being more successful investors than men in general. Much of this may be attributable to a more patient, disciplined investment style that is more prevalent with women. Generalizations can be a double-edged sword and may lead to unfair assumptions. The point is that despite perhaps an edge in the implementation of an investment strategy, women appear to be less willing to accept investment risk. This factor in isolation may contribute to a less successful long-term financial plan.
### Prevention is the First Line of Defense
While solving the gender pay gap would go a long way to closing the gender retirement gap, we need to focus effort on what we can directly control. As with our personal health, prevention has a greater impact than treatment. So what steps can women take to overcome the gap that exists in retirement? The TIAA report cites three strategies for improving financial security in retirement; save more, increase investment risk, and invest in a form of guaranteed lifetime income.
While all three may be good, general pieces of advice, they don’t actually solve the problem. How much more should you save? How much more risk do you need to take? Is investing in a guaranteed lifetime income product a good idea in all situations? What are the opportunity costs of each of these decisions? These are fundamental questions that everyone should seek to answer based on their personal financial situation and long-term goals. For women in particular, lower lifetime earnings, fewer hours worked and a longer life expectancy all contribute to the answers being all the more vital.
1To see the TIAA report, [click here](https://www.tiaa.org/public/pdf/income_gender.pdf?__hstc=84076294.bb5c7741d4ad88bc696e8cb9a4f18eee.1529347528495.1529958909183.1530287421275.14&__hssc=84076294.64.1530287421275&__hsfp=3606584967).
[](https://cta-redirect.hubspot.com/cta/redirect/3811900/22350bad-f2af-41e4-a9e9-e0effff8653a)
Topics: [Investment Management](https://blog.birchwoodfp.com/topic/investment-management), [Suddenly Single](https://blog.birchwoodfp.com/topic/suddenly-single)
*Investment Advisory services offered through Birchwood Financial Partners, Inc. an SEC Registered Investment Advisor.*
*All written content is for information purposes only. It is not intended to provide any tax or legal advice or provide the basis for any financial decisions. Opinions expressed herein are solely those of Birchwood Financial Partners, Inc., and our editorial staff. Material presented is believed to be from reliable sources; however, we make no representations as to its accuracy or completeness. All information and ideas should be discussed in detail with your individual adviser or qualified professional before making any financial decisions. We are not affiliated with or endorsed by the Social Security Administration or any government agency. The inclusion of any link is not an endorsement of any products or services by Birchwood Financial Partners. All links have been provided only as a convenience.*
### Search Our Blog
### Posts by Tag
- [Investment Management (50)](https://blog.birchwoodfp.com/tag/investment-management)
- [Retirement (50)](https://blog.birchwoodfp.com/tag/retirement)
- [Suddenly Single (39)](https://blog.birchwoodfp.com/tag/suddenly-single)
- [Cash Flow and Budgeting (36)](https://blog.birchwoodfp.com/tag/cash-flow-and-budgeting)
- [Estate & Legacy Planning (35)](https://blog.birchwoodfp.com/tag/estate-legacy-planning)
- [Market Insight (35)](https://blog.birchwoodfp.com/tag/market-insight)
- [Bridget Handke (29)](https://blog.birchwoodfp.com/tag/bridget-handke)
- [Dana Brewer (25)](https://blog.birchwoodfp.com/tag/dana-brewer)
- [Taxes (25)](https://blog.birchwoodfp.com/tag/taxes)
- [Damian Winther (20)](https://blog.birchwoodfp.com/tag/damian-winther)
- [Rachel Infante (18)](https://blog.birchwoodfp.com/tag/rachel-infante)
- [Socially Responsible Investing (SRI) (17)](https://blog.birchwoodfp.com/tag/socially-responsible-investing-sri)
- [Steve Dixon (14)](https://blog.birchwoodfp.com/tag/steve-dixon)
- [Charitable Giving (13)](https://blog.birchwoodfp.com/tag/charitable-giving)
- [Kimmie Andrews (12)](https://blog.birchwoodfp.com/tag/kimmie-andrews)
- [Education Planning (11)](https://blog.birchwoodfp.com/tag/education-planning)
- [Kay Kramer (5)](https://blog.birchwoodfp.com/tag/kay-kramer)
- [Cybersecurity (3)](https://blog.birchwoodfp.com/tag/cybersecurity)
- [Brayden Kelly (1)](https://blog.birchwoodfp.com/tag/brayden-kelly)
- [Growing Wealth (1)](https://blog.birchwoodfp.com/tag/growing-wealth)
- [Kayla Berceau (1)](https://blog.birchwoodfp.com/tag/kayla-berceau)
[See all](https://blog.birchwoodfp.com/gender-retirement-gap#)
[](https://www.birchwoodfp.com/)
[Home](https://www.birchwoodfp.com)
[WHO WE ARE](https://www.birchwoodfp.com/about)
[WHO WE SERVE](https://www.birchwoodfp.com/who-we-serve)
[WHAT WE PROVIDE](https://www.birchwoodfp.com/solutions)
[DOWNLOADABLE GUIDES](https://info.birchwoodfp.com/resources)
[blog](https://blog.birchwoodfp.com)
[Contact Us ](https://www.birchwoodfp.com/contact-us)
[Form CRS](https://info.birchwoodfp.com/form-crs)
[Forms ADV](https://info.birchwoodfp.com/adv)
[PRIVACY POLICY](https://info.birchwoodfp.com/privacy-policy)
[5601 Green Valley Dr., Ste 600](https://maps.app.goo.gl/EbBNRPP4sFfkeYZd8)
[Bloomington, MN 55437](https://maps.app.goo.gl/EbBNRPP4sFfkeYZd8)
Phone: [952-885-9088](tel:19528859088)
Email: [info@birchwoodfp.com](mailto:info@birchwoodfp.com)
All written content on this site is for information purposes only. Opinions expressed herein are solely those of Birchwood Financial Partners, Inc. and our editorial staff. Material presented is believed to be from reliable sources; however, we make no representations as to its accuracy or completeness. All information and ideas should be discussed in detail with your individual adviser prior to implementation. Advisory services are offered by Birchwood Financial Partners, Inc., an SEC Registered Investment Advisor. Birchwood Financial Partners, Inc. is not affiliated with or endorsed by the Social Security Administration or any government agency, and is not engaged in the practice of law. The presence of this web site shall in no way be construed or interpreted as a solicitation to sell or offer to sell advisory services to any residents of any State other than the States of AZ, CA, FL, IA, IL, MN, NC, NY, TX, WI or where otherwise legally permitted. All written content is for information purposes only. It is not intended to provide any tax or legal advice or provide the basis for any financial decisions.
Images and photographs are included for the sole purpose of visually enhancing the website. None of them are photographs of current or former Clients. They should not be construed as an endorsement or testimonial from any of the persons in the photograph. The inclusion of any link is not an endorsement of any products or services by Birchwood Financial Partners, Inc. All links have been provided only as a convenience.
© 2026 Birchwood Financial Partners. All Rights Reserved.
[Disclaimer ](https://www.birchwoodfp.com/disclaimer)[Legal, privacy, copyright and trademark information](https://www.birchwoodfp.com/legal-privacy-copyright-and-trademark-information)
```json
{
"@context" : "https://schema.org",
"@type" : "BlogPosting",
"author" : {
"@type" : "Person",
"name" : "Steve Dixon, CFA® CSRIC®",
"url" : "https://blog.birchwoodfp.com/author/steve-dixon-cfa"
},
"dateModified" : "2020-09-08T17:03:03.080Z",
"datePublished" : "2018-05-16T16:23:00.000Z",
"headline" : "The Gender Pay Gap and It's Impact on Women's Personal Retirement",
"image" : [ "https://blog.birchwoodfp.com/hubfs/personal%20retirement%20planning.jpg" ],
"mainEntityOfPage" : {
"@id" : "https://blog.birchwoodfp.com/gender-retirement-gap",
"@type" : "WebPage"
},
"publisher" : {
"@type" : "Organization",
"logo" : {
"@type" : "ImageObject",
"url" : "https://blog.birchwoodfp.com/hubfs/new%20logo%201%20b.jpg"
},
"name" : "Birchwood Financial Partners"
}
}
```