WOMEN AND 

RETIREMENT 

SAVINGS
Women And Retirement Savings

Planning and saving for retirement may seem like 

goals that are far in the future. Yet saving, especially 

for retirement, should start early and continue 

throughout your lifetime. Here are four reasons why 

saving matters to women – and especially to you!

Do You Know?

n Women are more likely to work in part-time 

jobs that don’t qualify for a retirement plan. 

And working women are more likely than men 

to interrupt their careers to take care of family 

members. Therefore, they work fewer years and 

contribute less toward their retirement, resulting 

in lower lifetime savings. If you work and if you 

qualify, join a retirement plan now. 

n Approximately 46 percent of working women 

participated in a retirement plan. Remember, even 

small amounts can earn interest and add up over 

time. 

n On average, a female retiring at age 65 can expect 

to live another 21 years, nearly 3 years longer 

than a man the same age. Savings can increase a 

woman’s chances of having enough money to last 

during her retirement. 

n By and large, women invest more conservatively 

than men. Choose carefully where you put your 

money and learn how to improve your investment 

returns. 

Start Here...Start Now

Here are eight questions to help you think about 

retirement and take charge of your financial future:

Do you work for an employer that offers a 

retirement plan?

If your employer offers a retirement plan, join it as 

soon as you can and contribute as much as the plan 

allows. Most employers with a 401(k) plan match a 

fixed percentage of the employee’s contribution. The 

most common match is 50 percent of the employee’s 

contribution up to a maximum percentage of wages 

or salary (usually 6 percent). The majority of 

employers who provide matches offer 50 percent or 

more. That’s like getting free money! While all job 

categories may not be included in your employer’s 

plan (those of part-time or temporary workers, for 

instance), your job may be one that is.

Remember, by saving early, you have time on your 

side. Your savings will grow and your earnings will 

compound over time.
Have you worked at the job long enough to 

earn retirement benefits?

Under some plans, such as a 401(k) or a traditional 

pension plan, you have to work for a certain number 

of years – say, 3 – before you become “vested” and 

can receive benefits (vesting simply means that you 

have worked long enough to earn the right to benefits 

from a savings or pension plan).

Too often employees, especially women, quit work, 

transfer to another job, or interrupt their work lives 

just short of the time required to become vested. Ask 

the personnel office, retirement plan administrator, 

or union representative about the vesting period and 

other details of your company’s plan.

Do you keep copies of the documents that 

define the provisions of your retirement plan?

In addition to asking questions of company or 

retirement plan officials, you should keep copies 

of the summary plan description (SPD) and any 

amendments. The SPD is a document that retirement 

plan administrators are required to prepare, and it 

outlines your benefits and how they are calculated. 

The SPD also spells out the financial consequences 

– usually a reduction in benefits – if you decide 

to retire early (earlier than age 65 in many plans). 

You probably received a copy of the SPD when you 

joined the pension or savings plan, but you may 

request another one from your employer or plan 

administrator. Also remember to keep retirementrelated records from all jobs. They provide valuable 

information about your benefit rights, even when you 

no longer work for a company.

What happens to your retirement benefits if 

you change jobs?

You may lose the retirement benefits you have earned 

if you leave your job before you are vested. However, 

once vested, you have the right to receive benefits 

even when you leave your job. In such cases, the 

company may allow, or in certain cases may insist, 

that you take your retirement benefits in a lump sum 

when you leave. However, other companies may not 

permit you to receive your money until retirement. 

The rules for your plan are spelled out in the SPD.

A word of caution: If you receive your retirement 

benefits in a lump sum, you will owe additional 

income taxes, and may owe a penalty tax. A better 

way is to reinvest your savings in another qualified 

retirement plan or an Individual Retirement Account 

(IRA) within 60 days. You avoid tax penalties and you 

keep your long-term retirement goals on track.

If you do want to reinvest the money, it is important 

that you do not directly receive it. If you receive the 

money directly, you will have to pay a 20 percent 

withholding tax on the amount you receive and then 

file for a refund in the next year, providing proof that 

you have transferred the funds to an IRA. Instead, 

instruct the retirement plan to transfer your money 

directly to an IRA you have established or to another 

qualified retirement plan. This is easy to do using 

simple forms supplied by the new plan. If you want 

help with the forms, representatives of the plan are 

generally available to assist you.

Do you know how you can save for retirement 

even if you don’t belong to an employersponsored retirement plan?

Anyone receiving compensation or married to 

someone receiving compensation can contribute to 

an IRA. In addition, if you are self-employed, you 

can start a Simplified Employee Pension Plan (SEP) 

or a Savings Incentive Match Plan for Employees of 

Small Employers (SIMPLE).

As with other retirement savings plans, there may 

be tax consequences, and possibly penalties, if you 

withdraw your savings early.

Are you tracking your Social Security 

earnings?

More women than ever work, pay Social Security 

taxes, and earn credit toward a monthly income at 

retirement. These earnings can mean some income for 

you and your family in the form of monthly benefits 

if you become disabled and can no longer work. If 

you die, your survivors may be eligible for benefits. 

In addition, you may be eligible for Social Security 

benefits through your husband’s work and can receive 

benefits when he retires or if he becomes disabled 

or dies. Special rules apply if you and your husband 

have been employed and both have paid into Social 

Security. Special rules also apply if you are divorced 

or if you have a government retirement plan.

To calculate your benefit estimate, visit the 

Social Security Administration’s Website at 

www.socialsecurity.gov.
Are you entitled to a portion of your spouse’s 

retirement benefit if you and your husband 

divorce?

As part of a divorce or legal separation, you may be 

able to obtain rights to a portion of your spouse’s 

retirement benefit (or he may be able to obtain a 

portion of yours). In most private-sector plans, this 

is done using a qualified domestic relations order 

(QDRO) issued by the court. You or your attorney 

should consult your spouse’s plan administrator to 

determine what requirements the QDRO must meet.

Are you aware of the rules that govern your 

retirement plan and the retirement plan of 

your spouse if either of you dies?

The rules are different for defined contribution and 

defined benefit plans.

If you or your spouse belong to a defined benefit plan 

(a traditional pension plan), the surviving spouse 

may be entitled to receive a survivor benefit when 

the enrolled employee dies. This survivor benefit is 

automatic unless both spouses agree, in writing, to 

forfeit the benefit. You will need to check the SPD or 

consult with the plan administrator regarding survivor 

annuities or other death benefits.

If you are a beneficiary under your spouse’s defined 

benefit pension plan, you may want to request a copy 

of the SPD and other plan documents that describe 

your spouse’s vested benefits. You will probably 

want to make the request in writing, and you may be 

charged a fee for the information.

The rules may be different if you or your spouse 

participate in a defined contribution plan (such as 

a 401(k) plan). Consult the plan administrator for 

details about spousal rights.

It’s Up to You

Once you’ve answered these questions, you’re on 

the road to learning more about financial freedom. 

As a resource for women (and men), the Employee 

Benefits Security Administration has issued Savings 

Fitness: A Guide to Your Money and Your Financial 

Future and Taking the Mystery Out of Retirement 

Planning. The booklets include resource and Website 

sections (see the Resources section to get a copy).

Resources

Visit the Employee Benefits Security Administration’s 

Website dol.gov/agencies/ebsa to view the following 

publications:

• Top 10 Ways to Prepare for Retirement 

• Savings Fitness: A Guide to Your Money and Your 

Financial Future 

• Taking the Mystery Out Of Retirement Planning 

• What You Should Know about Your Retirement Plan 

• Filing A Claim For Your Retirement Benefits

• Retirement Toolkit 

• QDROs: The Division of Retirement Benefits 

through Qualified Domestic Relations Orders 

To order copies, contact EBSA electronically 

at askebsa.dol.gov or by calling toll free 

1-866-444-3272.

In addition, visit the following Websites for more help:

Social Security Administration 

Request a copy of What Every Woman Should Know

800-772-1213 

www.socialsecurity.gov/pubs

Pension Benefit Guaranty Corporation

Download a copy of A Predictable, Secure Pension 

for Life.

800-400-7242

www.pbgc.gov

U.S. Securities and Exchange Commission

Download a copy of Saving and Investing

800-732-0330 

investor.gov

American Institute of Certified Public Accountants

360 Degrees of Financial Literacy

360financialliteracy.org

Financial Literacy and Education Commission

mymoney.gov

EMPLOYEE BENEFITS SECURITY ADMINISTRATION

UNITED STATES DEPARTMENT OF LABOR

September 2017