Hello everyone — Michelle here briefly. I’m pleased to introduce my friend Amanda Holden, who runs one of my favorite personal finance blogs, Dumpster Dog. Below is her guest post explaining why retirement investing is especially important for women and how to get started. Enjoy!
Picture this: a stylish woman in her seventies, sipping an espresso at a sidewalk café in Paris, reading a beautiful novel while a much younger companion brings her a third croissant before 10 a.m. Why not?
That woman could be you.
Whether your retirement includes croissants in Paris or a quieter dream, saving and investing are essential to make it happen.
We often think of retirement as a target age—say, 65—but in truth, retirement is about having enough money saved. Younger generations generally won’t rely on the same pension systems previous generations had, so retirement funding falls largely on our shoulders.
After six years in an investment management job, I left. Helping the wealthy get wealthier wasn’t what I wanted long-term, so I launched my own business, Invested Development. It’s aimed at beginners and people ready to level up their investing. My favorite moment is when students realize that investing is within their reach.
Part of my mission is to address specific challenges women face when planning for retirement and to help them build practical solutions so they can enjoy their later years on their own terms.
If you want a tool to clarify your retirement outlook and run scenarios, consider using a retirement planning app like Boldin. It helps you understand where you stand and plan without immediately hiring a financial advisor.
Here are four reasons women need to save and invest for retirement — and actionable steps to get started.
1. Retirement is likely your largest lifetime expense.
Let’s be honest: saving for retirement can feel distant when you have nearer-term goals like buying a home or other priorities. Still, retirement is often the largest expense a person faces. You may live 20–30 years without employment income. That requires substantial resources.
Think about how much you spend in one year, then multiply that by two or three decades. That’s the scale of money you’ll need. Saving is foundational, but investing accelerates growth and makes long-term goals achievable.
2. Women generally live longer than men.
Because women tend to live longer, they need more retirement savings to cover additional years of life, often including healthcare costs. For example, life expectancy data shows women live several years longer on average than men. That extra time can translate into significant additional expenses.
Plan conservatively: assume longer lifespans rather than optimistic minimums. It’s wise to design a retirement strategy that could support you into your nineties or beyond.
3. Women need to secure their own financial independence.
Data consistently show women are more likely than men to face poverty in retirement, and the situation is worse for women of color and single women. Life is unpredictable: relationships change, partners may die, and careers can be disrupted. Relying on someone else for financial security is risky.
Instead, build a financial plan that assumes you are responsible for your own future. Learning how to manage investments, retirement accounts, and financial paperwork now helps avoid scrambling during crises like divorce or the loss of a spouse.
4. Women typically earn less than men over a lifetime.
Investing is using money to make more money. Because women often earn less across their careers, it’s crucial to maximize the growth of the money they do have. Compounding returns over time can meaningfully close some of the gaps caused by lower lifetime earnings.
While advocating for pay equity and better workplace supports is essential, women should also learn practical investing strategies to protect and grow their resources.
How to invest for retirement
Start by understanding the retirement account options available to you. Are you covered by a workplace retirement plan like a 401(k) or 403(b)? If you’re self-employed, you’ll need to open a retirement account at a brokerage such as Fidelity or Charles Schwab — options include Roth IRA, SEP IRA, or Solo 401(k), depending on your situation.
Next, decide how to invest inside those accounts. A 401(k) or IRA is a container that holds investments, not an investment itself. Inside, you can hold cash, stocks, bonds, mutual funds, or ETFs.
Many people choose a diversified mix of stocks and bonds aligned with their risk tolerance and time horizon. Mutual funds and ETFs are common ways to achieve diversification. Index funds—either mutual funds or ETFs—are popular because they aim to match the market’s average return with low fees.
Keep costs low: fees paid to advisors, plan administrators, or brokers reduce your investment returns, so only pay for services that clearly add value.
Build confidence in your saving and investing plan
If you’re ready to learn investing basics and create a retirement plan you can trust, consider taking a structured course or workshop. I teach Invested Development, a live, virtual four-part Investing 101 course that helps people develop a clear, actionable plan. My approach is practical, judgment-free, and designed to make investing approachable.
Gaining control over your money and investments is empowering. Through my work at Invested Development, I’ve helped thousands of women become confident, long-term investors. I also write The Dumpster Dog Blog, which has been recognized in personal finance circles for its practical, no-nonsense advice.
Are you saving for retirement? Why or why not?