Why Women Need to Save More for Retirement Than Men

1. Women Earn Less Than Men (And That Adds Up Over a Lifetime)

The gender pay gap exists almost everywhere, including in Singapore. Women in Singapore earn 14.3% less than men, according to a 2023 Ministry of Manpower (MOM) study. That means for every $5,000 a man makes, a woman in the same role earns only $4,285.

Now, you might be thinking: But isn’t that gap adjusted for factors like age, education, and occupation? Yes, and even after adjustments, women still earn 6% less than men for the same job.

Why the gap?

• Men tend to work in higher-paying industries and positions.
• More men than women hold top executive roles—only 12.5% of CEOs and 41.7% of CFOs in Singapore were women in 2023.
• Unexplained factors like workplace discrimination, career breaks due to caregiving, and differences in salary negotiation still persist.

And here’s where it affects retirement: Lower earnings mean lower savings. If a woman earns 14.3% less over 40 years, that’s a huge chunk of lost income—and consequently, a smaller retirement fund.

2. Women Work Fewer Years Than Men

Even beyond the gender pay gap, women work fewer years than men. Why? Because they often take career breaks for caregiving.

The numbers speak for themselves:

• The employment rate for women in Singapore is 78.3%, compared to 88.8% for men.
• The main reason women leave the workforce (besides retirement and education) is family responsibilities.
• Among parents who stay home to care for children, 95.1% are women.

Cultural expectations still play a role. A 2025 Ipsos survey found that 32% of women and 41% of men in Singapore still believe that a husband’s main role is to work, while a wife’s role is to take care of the household.

This mindset is slowly changing, but the impact on retirement is real. Fewer working years = less CPF savings and retirement funds.

3. Women Are Less Likely to Be Financially Savvy

Financial literacy plays a major role in wealth accumulation. Studies show that globally, 35% of men versus 30% of women are financially literate. A 2020 SMU study found that older women in Singapore know less about investing and financial planning than men—especially when it comes to stock diversification.

And here’s the kicker:

• Being able to answer just one additional financial literacy question correctly was linked to an extra $166,800 in total net wealth.
• Of that, $97,700 was non-housing net wealth, and $52,600 was net financial wealth.

The good news? Women are catching up. A 2025 YouGov survey found that over 60% of women in Singapore now manage their own finances, and 66% of women report having better financial health than their mothers did at their age.

Still, the knowledge gap remains, and financial literacy is crucial for a comfortable retirement.

4. Women Live Longer Than Men (So They Need More Money)

Here’s an undeniable fact: Women outlive men.

In Singapore, the life expectancy for women is 85.2 years, while for men, it’s 80.7 years. That’s almost five extra years of living expenses that women need to account for in their retirement savings.

Living longer isn’t just about extra years—it means more medical expenses, higher healthcare costs, and a greater need for long-term care. The cost of healthcare is rising, and with inflation, a woman who outlives her male counterparts by five years could need hundreds of thousands of dollars more in savings to sustain her lifestyle.

So, What Can Women Do?

The gender gap isn’t closing anytime soon, but that doesn’t mean women should sit back and accept the reality. Here’s how women can take control of their retirement savings:

✅ Start Saving Early – The earlier you start, the more time your money has to grow. Compound interest is your best friend.

✅ Maximise CPF Contributions – Contribute beyond the mandatory CPF rates to build a stronger retirement fund.

✅ Invest Wisely – Don’t just save—invest! Stocks, ETFs, REITs, and retirement annuities can help grow wealth over time.

✅ Increase Financial Literacy – Take financial planning courses, read up on investing, and don’t be afraid to seek advice from a financial consultant.

✅ Plan for Healthcare Costs – Get adequate medical insurance, including long-term care coverage, to avoid financial strain later.

✅ Push for Equal Pay & Workplace Flexibility – Advocate for fairer salaries, better maternity benefits, and policies that support women’s financial independence.

Final Thoughts