Lower earnings, career interruptions, and higher amounts of debt all make it more difficult for women to save.

International Women’s Day is a global day celebrating the social, economic, cultural, and political achievements of women. But it’s also a day when we recognize the work that still needs to be done when it comes to women’s equality.

For example, a recent survey by Yahoo Finance and Marist Poll found that most Americans are dissatisfied with the amount of money they saved last year, but women are far more likely to be “very dissatisfied” or “completely dissatisfied” with their savings than men — 40% vs. 28%, respectively.

New York Life’s 2023 Wealth Watch survey also found that in 2022, women reportedly saved an average of $3,146, while men saved more than double that figure: $7,007.

Why does this disparity exist? Despite making major strides in education, leadership, and entrepreneurship, women continue to face unique financial challenges that make saving money harder than it should be. From the gender pay gap to the cost of caregiving to systemic barriers in wealth-building opportunities, the road to financial security is often steeper for women.

Although the burden of fixing this problem shouldn’t fall solely on women’s shoulders (meaningful change will require a collaborative effort from the government, employers, financial institutions, and others), recognizing these obstacles can put women in a better position to overcome them.

The gender pay gap

In 2024, women earned an average of 85% of what men earned, according to a Pew Research Center analysis of median hourly earnings of both full- and part-time workers. In other words, for every dollar men earn, women earn just 85 cents, on average. And not much has changed in the past 20 years — in 2003, women earned 81% as much as men.

“That means a higher portion of their income has to cover their ‘today’ needs, and therefore, a smaller portion is available for savings and — equally important — for investing,” said Bobbi Rebell, a certified financial planner and personal finance expert at BadCredit.org. “If a woman is earning 85 cents for every dollar a man earns, they have 15% less to allocate toward their financial goals.”

The good news: There are steps we can take as women to advocate for ourselves. For example, the next time you’re interviewing for a new job or up for a promotion, take that opportunity to negotiate a higher salary based on market research and the skill set you bring to the table. At mid-level positions, for instance, there's typically a negotiation range of 10% to 20%. You’ll leave money on the table if you don’t ask for it.

Also, don’t shy away from having open and honest conversations about salaries at work. This helps make your salary expectations and goals clear with your boss and allows you to understand how to best position yourself for a raise or bonus in the future. Plus, it encourages compensation transparency across the organization, which can help level the playing field for everyone.

Career interruptions

Studies show that women are more likely than men to adjust their careers to take on caregiving responsibilities, such as raising children or caring for elderly family members. These career interruptions can have a domino effect that negatively impacts long-term earning potential and the ability to save.

According to the AARP Public Policy Institute, close to 70% of caregivers experience work-related difficulties as a result of their caregiving responsibilities and risk losing up to $300,000 in job-related benefits.

“Even if a woman beats the odds and ‘catches up’ to that pay level a few years later, those lower earning years still cost in terms of compound interest and savings growth over time,” Rebell said.

This is an area where employers can step up to better support women through initiatives such as paid leave, flexible time-off policies, and childcare subsidies.

Longer life expectancies

Women in the U.S. outlive men by more than five years on average, according to the National Center for Health Statistics. That longer life expectancy means women need to save even more for retirement than men. And 65% of women worry they will outlive their retirement savings.

This is why it’s crucial to start saving as soon as possible for your golden years. The earlier you start saving for retirement, the more time your money has to earn compound returns. If you’re saving for retirement in an employer-provided retirement plan, look into whether your employer matches contributions and be sure you’re contributing enough to get that full match.

You’ll also want to check in on your retirement savings periodically and adjust the amount you’re contributing as your income and financial circumstances change.

Read more: What is compound interest, and how is it calculated?

The pink tax

Inflation isn’t the only culprit when it comes to higher costs. On top of already elevated prices for everyday goods, women tend to pay a premium for certain products and services, such as deodorant, haircuts, and dry cleaning, simply because they’re “for women.”

“The so-called ‘pink tax’ remains a real cost for women,” said Rebell. “Products that are comparable to those marketed to men are often priced higher when marketed to women.”

Next time you’re out shopping for your everyday goods, compare prices and see if you can find a generic version of the product you’re looking for or a version that isn’t specifically targeting women — think: swapping pink-packaged razors for a unisex or men’s version.

Student loan debt

Many Americans face hefty student loan balances, but women shoulder a greater percentage. According to the Education Data Initiative, 63.6% of all student loan debt belongs to women. Higher levels of debt can make it incredibly difficult to save and invest for the future.

If you struggle with a large student loan balance, look for ways to make monthly payments more manageable. Income-driven repayment plans, for instance, can lower your payments to a small percentage of your income. Also, it may be worth pursuing a forgiveness program, such as Public Service Loan Forgiveness (PSLF), which cancels any remaining debt after you’ve made 120 payments while working at an eligible employer.

Experts also say that understanding and managing your monthly bills alongside your future goals starts with a clear financial plan.

“Being informed and making intentional decisions about your money and your investment goals is a smart strategy,” Rebell said. “It can feel overwhelming, so consulting a financial professional for both information and accountability is often well worth the investment.”