Because women live longer, they can expect to live some of their retirement years without their spouse. If the husband was the primary wage earner, his death is made all the more difficult if his wife stands to lose all or part of his pension. When a spouse dies, living expenses are not cut in half as some people might think. Women still earn less than men. Pension benefits are usually based on years of service and salary, so lower wages mean lower pension benefits later in life.
Risk is the potential for realizing low returns or even losing money.
Women tend to invest more conservatively, which lowers the risk but also lowers the return. According to Department of Labor statistics, women tend to spend before retirement a large percentage of money from their qualified retirement plans. That is because the role of caregiver takes over. What was once a nest egg turns into college tuition for the kids, a down payment on a larger home, or other well-intentioned ways to get ahead. Invest in a tax deferred savings plan.