Women today are not just managing households — they’re shaping the future of wealth. According to Fidelity, more than 60% of women now make all or most of their household’s financial decisions. As gender roles around money evolve, women’s influence on the economy continues to grow.
The Numbers Tell a Powerful Story from the research by Fidelity
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- 40% of women earn the same or more than their male partners.
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- 62% of university graduates are women.
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- 50% of new businesses in Canada are female-led.
Despite this progress, many women still save about 30% less for retirement than men. Why? Several factors contribute to the retirement savings gap — and understanding them is the first step toward closing it.
1. Longevity – The average life expectancy in Canada is 84 years for women and nearly 80 years for men. As women live longer than men, they need their savings to stretch further or they risk outliving their savings.
2. Persistent gender pay gap – Although women today make a significant percentage of the labour force, including in STEM fields but a pay gap still persists. According to Statistics Canada, women still make about 88 cents for each dollar than men in the same job. This pay gap translates into lower lifetime earnings and, often, lower pension benefits and contribution room. Even small differences in income can compound into large differences in retirement savings over time
3. Shorter and / or more disrupted careers – Women are still more likely to step out of the workforce or reduce hours to provide unpaid care, whether for children, aging parents, or other family members. Career breaks or part‑time work can mean:
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- Fewer years of contributions to retirement plans
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- Slower salary progression
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- Gaps in employer benefits and pensions
All of this can reduce the amount available to invest for the long term.
4. Risk averse choices – According to a survey by Canada Life, women are not necessarily risk averse, but more “risk aware,” and focused on potential losses rather than gains. Women also tend to report lower confidence in their investing knowledge and a lower tolerance for volatility, which can lead to:
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- Holding too much cash
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- Choosing very conservative investments
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- Delaying investment decisions altogether
Over time, consistently lower returns from overly conservative portfolios can make women’s retirement savings lag, even when they start saving early.
Now that we know that, what do we do?
The good news is that there is a lot women can do to close the retirement savings gap and build the financial futures they want.
1. Equip yourself with knowledge – Learning the basics of investing can quickly build confidence. Focus on:
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- Understanding your risk tolerance
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- The relationship between risk and return
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- How different investment types (e.g., mutual funds, ETFs, stocks, bonds) behave over time
When you understand how markets work and how to interpret risk, it becomes easier to make decisions and stay invested through ups and downs. Start here to learn more about retirement savings tools.
2. Start early and stay consistent – Time is one of the most powerful tools investors have because compounding works best over longer periods. Many women already save diligently; the next step is to align their savings with:
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- An asset mix that matches their life stage and goals
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- A regular contribution plan (for example, automatic monthly contributions)
Even modest but consistent contributions, invested appropriately, can grow significantly over a working lifetime.
3. Diversify and leverage registered accounts – Diversification helps balance risk and return while avoiding over‑reliance on any one investment. Consider:
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- Using registered accounts (RRSP, TFSA, FHSA, RDSP where applicable) to benefit from tax advantages
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- Holding a mix of investment types (mutual funds, ETFs, stocks, bonds, GICs) that align with your goals and time horizon
A well‑diversified portfolio can provide growth potential while helping cushion short‑term market volatility
4. Get professional advice – Long‑term studies in Canada show that households who work with an advisor for 15 years or more can accumulate about 2.3 times more financial assets than similar households who do not receive advice. Advisors can help:
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- Clarify goals and priorities
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- Build a personalized retirement plan
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- Keep you on track through life’s transitions and market cycles
These studies are conducted by Investment Fund Institute of Canada. Many women also say they value guidance from a professional who understands their goals, caregiving responsibilities, and long‑term needs.
Call to action for women investors
Women already lead in education, entrepreneurship, and household financial decision‑making. The next step is to ensure that leadership translates into strong, confident investing and secure retirements.
By learning more, starting early, diversifying wisely, and seeking good advice, women can close the retirement savings gap and build lasting wealth for themselves and their families.
