There's a Gender Gap in Retirement Confidence, Data Shows. Here's How Women Can Overcome It

Many people worry about retirement -- having enough money, running out of money, and so forth. But in a late 2023 report by Northwestern Mutual, only 44% of women think they'll be financially prepared for retirement. Compare that to 61% of men, and clearly, there's a pretty big gap.

Of course, that gap could be attributed to another gap: the gender pay gap. In 2022, women earned an average of 82% of what their male counterparts brought home, according to Pew Research Center data. And that pay disparity has been in place for a good 20 years, putting women at a pretty big disadvantage.

If you're feeling less than confident about your retirement prospects, don't just resign yourself to a lifetime of financial insecurity. There are steps you can take to approach retirement from a better place -- and enjoy a comfortable lifestyle once your career comes to an end.

Start saving early on

The more people talk about and bring attention to the gender pay gap, the greater the chances of it narrowing in time. But one thing you can do to overcome that gap is make the most of your income by setting aside a small portion of it for retirement savings early on in your career. Even if you're only able to contribute modestly to your individual retirement account (IRA) or 401(k) due to limited earnings, steady contributions over time can go a long way when coupled with the right investments.

And speaking of investments, it pays to go heavy on stocks in the course of building a retirement nest egg. Though investing in the stock market does carry risk, you should know that it's averaged an annual 10% return over the past 50 years. And that accounts for great years and years when the market tanked.

So let's say you're able to contribute $200 a month to a retirement plan over a 40-year period. That does most likely mean having to start in your 20s. But if your portfolio delivers a 10% return during that time, you'll end up with a nest egg worth $1.06 million.

Talk to a financial advisor early on

Some people avoid seeking financial help because they think they don't have enough money or savings to warrant an advisor's input. But that's a mistake.

It's the job of a financial advisor to help you make the most of your money -- no matter how much or how little of it you have. And if you sit down with a financial advisor at a relatively young age, they can help you establish a savings and investment plan that makes it more likely that you'll hit your goals, one of which may be to enjoy a comfortable retirement.

In fact, it's a good idea to share your main retirement concerns with a financial advisor so they can help you devise a plan to overcome them. If you're worried about paying for healthcare expenses later in life, for example, they might advise you to take advantage of options like health savings accounts that allow you to sock away money for long-term medical needs.

It's natural to lack confidence in the context of retirement -- no matter what gender you identify with. But if you're concerned about your ability to retire in general, your best bet really is to start saving and investing as early as possible, and to seek help from someone who can objectively devise a plan that's conducive to meeting your goals.