AARP Works to Protect Women’s Retirement Savings

We’ve endorsed federal legislation that addresses the financial vulnerability of women retirees

Emily Paulin & Natalie Missakian,

AARP

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En español

Published March 18, 2025

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AARP; (Getty Images 2)

Women often earn less money than men throughout their careers and are more likely to leave the workforce to take on family caregiving responsibilities. That may leave them in a precarious position as they approach retirement.

That’s why AARP is backing federal legislation that would improve financial security for older American women and provide resources to help them be independent in retirement.

The Women’s Retirement Protection Act (WRPA) of 2025, if passed, would prevent the withdrawal of retirement funds by one spouse without the consent of the other and boost financial education and literacy among women. The bill was reintroduced in the U.S. House March 11 and in the U.S. Senate the following day.

“AARP believes it is crucial to protect marital assets for both spouses and safeguard hard-earned retirement savings from fraud and deception,” wrote AARP’s Bill Sweeney, senior vice president for government affairs, in letters to the House and Senate sponsors of the bills. He noted that the legislation would be “avaluable tool in helping women across America secure their financial future.”

AARP has long supported efforts to boost retirement savings for women,who typically earn less than men and more often mustpause contributions to retirement plans because they leave the workforce for caregiving reasons. This can reduce the amount they can collect from Social Security.

Women make up two-thirds of low-wage workers in the U.S., even though they comprise less than half of all workers, according to the WRPA bill. Low-wage workers are less likely than other workers to participate in a retirement plan at work.

Also, because of the pay gap, women working full-time and year-round typically lose out on $398,160 over a 40-year career compared to men. That requires the average woman to work almost a decade longer than her male counterpart to make up that gap.

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When it comes time to retire, women generally receive fewerSocial Security dollars. The monthly average payment for women was $1,714 in December 2023, compared to $2,106 for men, the WRPA bill notes.

More than 90 percent of women ages 50 to 64 are concerned about having enough money to live comfortably throughout their retirement years, according to a 2022 survey by AARP. Many of those who lacked confidence worried their Social Security and savings would fall short of their expenses, while others said they did not earn enough money to save.

Bill calls for better protections, education and resources

The WRPA would establish spousal protections for defined contribution plans, like 401(k)s, that prevent one spouse from withdrawing a couple’sretirement funds without the other's knowledge or approval. While traditional defined benefit retirement plans, like a pension, have spousal protections, contribution plans, which are how most people save for retirement now, do not.

“As women strive for economic equality in this country, we must make sure they can retire with dignity,” Rep. Lauren Underwood (D-IL), co-sponsor of the House bill, said in a press statement. “That means protecting their financial future and preventing a spouse from draining shared retirement savings without consent.”

Additionally, the Act would require financial product or service providers to furnishcustomers with information and resources on retirement planning or later-life economic security from the Consumer Financial Protection Bureau or another federal agency.

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The Act would also provide grants for community-based organizations that educate and offer tools to improve financial literacy among working or retiring women. Retirement accounts are often a leading cause of contention in a divorce or separation, and some of the grants would seek to assist low-income women and survivors of domestic violence in securing retirement benefits they are entitled to.

“I am proud to introduce this legislation to extend protections for women in the workforce and ensure more Americans get the hard-earned retirement they deserve,” Sen.Tammy Baldwin (D-WI), co-sponsor of the Senate bill, said in a statement.

Learn more about AARP resources to help with planning your retirement.

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Emily Paulin is an editor at aarp.org who covers nursing homes, health care, and federal and state policy. Her work has also appeared in Broadsheet, an Australian lifestyle publication.

Natalie Missakian covers federal and state policy and writes AARP’s Fighting for You Every Day blog. She previously worked as a reporter for the New Haven Register and daily newspapers in Ohio. She has also written for the AARP Bulletin, the Hartford Business Journal and other publications.