Nearly one in four divorced, separated, or widowed women in the U.S. has less than a month’s worth of retirement savings, compared to fewer than one in 10 men in the same situation, according to new data from PensionBee.
The company’s second-quarter Happy Retirement Report highlights how major life changes such as divorce and widowhood are leaving women financially vulnerable in retirement. While 42 per cent of Americans have less than one year of retirement savings, women are nearly twice as likely as men to report having less than six months set aside.
Among divorced, separated, or widowed women, 23 per cent have less than a month’s worth of savings, and only 38 per cent plan to increase their retirement contributions in the coming year. That compares with 57 per cent of men facing similar transitions.
“These aren’t just retirement statistics, they’re warning signs,” said Romi Savova, CEO of PensionBee. “Women face disproportionate financial risks during life transitions, and these risks can turn personal hardship into long-term retirement insecurity.”
Gaps extend beyond savings
The disparities also show up in planning and access to professional advice. Only 9 per cent of women in these categories reported working with a financial advisor, compared to 18 per cent of men. Women were also twice as likely as men to lack a clear retirement plan.
Crisis behaviours—such as taking hardship withdrawals or failing to meet employer contribution matches—were more common among those no longer in a marital partnership. Twenty-three per cent of separated, divorced, or widowed people said they had taken hardship withdrawals from retirement accounts, compared to 17 per cent of married respondents.
Marriage still a structural advantage
PensionBee’s findings reinforce previous research that shows married people enjoy better retirement outcomes, largely due to combined financial planning and dual-income advantages. Among married individuals, 50 per cent had a positive outlook on retirement, compared to just 28 per cent of women and 31 per cent of men who had experienced a major marital transition.
The report suggests that U.S. retirement systems, designed around stable, two-income households, are failing to protect those who experience common life disruptions.
