Short-Term Financial Pressures Slow Women’s Retirement Savings

New research from StanCorp Financial Group Inc.—commonly know as The Standard—revealed that women are more likely than men to take on emergency expenses while also attempting to save for retirement—a balancing act that often strains long-term financial planning. The survey found a 13-percentage-point gender gap in retirement confidence, with just 40% of women believing they are saving enough, compared with 53% of men.

Key factors related to this disparity included a greater focus on emergency savings and day-to-day expenses; financial pressures tied to caregiving responsibilities; and higher rates of medical debt, particularly from childbirth-related costs. Lower average overall incomes were also a major factor, as were persistent gender pay gaps and the higher likelihood of delaying or reducing retirement contributions.

For example, 25% of surveyed women said they focus on paying down debt, compared with 18% of men, reflecting how competing financial demands influence women’s ability to prioritize retirement savings. Despite these challenges, women respondents expressed a strong desire to save: 64% said they value retirement plans, compared with 60% of male respondents.

Employers Play a Critical Role

The report emphasized the importance of workplace benefits in closing the retirement confidence gap, stating that voluntary and disability benefits can provide much-needed financial stability for women managing competing short-term demands. While men and women reported valuing employer benefits at similar rates, 32% of surveyed men prioritized saving for retirement, compared with 25% of women.

The study’s authors noted that using pre-tax dollars to purchase group benefits through employers makes coverage more affordable and accessible than buying independently. If these benefits were not offered in the workplace, women were less likely to seek them elsewhere, given the pressures on their paychecks.

According to the survey, women’s access to employer-sponsored benefits was highest for short-term disability (76%) and retirement plans (73%), followed by long-term disability coverage (68%). Other voluntary benefits included critical illness insurance (53%), accident insurance (50%) and cancer insurance or cancer indemnity coverage (44%).

The study recommended that plan sponsors take a more proactive role in supporting women’s retirement readiness by improving communication about financial priorities; expanding access to tools and education focused on long-term savings; and designing plans that strengthen overall financial wellness. Enhancing these financial well-being initiatives could boost confidence and help women build a more secure retirement outlook, according to the report.

“Meeting women where they are regarding workplace benefits means portfolio offerings must have enough range and flexibility to accommodate the varying financial goals of all employee populations,” said Melissa Oliver-Janiak, The Standard’s vice president of total rewards and HR mergers and acquisition strategy, in a statement. “Employers who invest in benefits that meet women’s real-world needs will see stronger retention, higher morale and a more resilient workforce.”

Kantar, an AI-native marketing data and analytics business, conducted behalf of The Standard a 15-minute online survey of 5,000 adults, most of whom received employee benefits. The survey was conducted from March 10 through March 27, 2025, and included approximately 3,468 women (70%) and 1,523 men (30%) between the ages of 18 and 70.