Here’s a fact: women tend to live longer than men, by about five years on average.

Here’s another one: women generally earn less than men.

Add them together, and you’ll see why many women are more financially vulnerable in retirement than couples or single men. And, because of those demographic facts, these women may end up needing more money to fund their retirements.

There is a very real gender gap when it comes to retirement. The asset management firm Fidelity points out that the problem of funding retirement can snowball for women who earn less over their lifetimes, since most people set aside a percentage of each paycheck for retirement. Do the math; it means a lot less money in the retirement nest egg. Add the compounding effect over many years, and the discrepancy in dollars can be huge.

These problems are more often associated with women, but single men can also face similar issues. This applies to widows, divorcees, and people who have always been single, even though the reasons often vary for each group.

Why Are Women at Such a Disadvantage?

Women earn roughly 84 cents for each dollar that men earn. Despite the increase in the number of women in the workforce, this pay discrepancy hasn’t changed all that much in decades.

By some estimates, that pay difference amounts to about $900,000 over a lifetime. According to the American Association of University Women, women over 65 earn roughly 70 percent as much as men in retirement.

That’s because women, far more than men, often have substantial gaps in their employment as they take time away from their careers to stay at home and care for their children and, often, their parents. AARP calls this the “sandwich caregiver,” someone who cares for both children and aging parents simultaneously.

That leads to lost income, fewer job opportunities and promotions, and significantly smaller IRA and 401(k) balances.

And because women tend to live longer than men, their savings must stretch further in retirement.

Widows Have It Especially Rough

What’s known as the “widow’s penalty” refers to a surviving spouse – man or woman – who faces a significantly higher tax burden and increased costs, despite having a lower household income.

The moment a spouse dies is often a turning point—emotionally and economically. For many couples, retirement planning hinges on two incomes: two Social Security checks, two pensions, shared savings. But when one spouse dies, a big chunk of that income is lost. Total household Social Security benefits can fall by 33% to 50%, depending on how benefits were structured. That’s a sudden and steep drop in income against essentially the same set of living costs.

Unlike married couples, widows can no longer share major expenses—housing, utilities, insurance—and might struggle to maintain the same standard of living.

For the tax year in which a spouse dies, the survivor can typically still file as “Married Filing Jointly.” However, in subsequent years, they must switch to “Single” filing status (unless they have qualifying dependents).

And because single tax brackets are roughly half as wide as joint brackets, the surviving spouse may be hit by higher marginal tax rates at much lower income levels.

Household income often drops because the survivor keeps only the higher of the two individual Social Security benefits, losing the smaller check entirely. In addition, Medicare IRMAA surcharges (income-related premiums) trigger at lower thresholds for single filers.

In a common scenario, a surviving spouse might receive $25,000 less in annual income due to lost benefits but still end up paying $6,000 more in federal taxes because of the change in filing status and reduced deductions.

It’s also likely that the surviving spouse will have invested immense amounts of time and money providing care for their partner. But the surviving spouse may not have a caregiver network to care for his or her needs in the same way and may have depleted some of their nest egg caring for their departed loved one.

Is There Any Good News or Mitigation Strategies?

Mitigating penalties for widows and divorcees requires proactive tax and income management before and after losing a spouse.

For many people, it makes sense for the higher-earning spouse to wait until age 70 to collect Social Security. The benefit increases by about 8 percent for each year you wait, and the surviving spouse will have that higher benefit for the rest of their life. Of course, everyone’s situation is different, and we always recommend consulting with a financial planner to help you decide what’s right for you.

Here are some other ideas to consider and discuss with your financial advisor:

• Convert traditional IRA funds to a Roth IRA while both spouses are living (and filing jointly). That can reduce future Required Minimum Distributions (RMDs) and the survivor’s taxable income.
• In the year of death, survivors may consider accelerating income (such as realizing capital gains or performing Roth conversions) to take advantage of the joint tax rates one last time.
• If you want to downsize as a now single person, consider selling your home within two years of your spouse’s death. That may allow the survivor to exclude up to $500,000 in capital gains, rather than the $250,000 allowed for singles.
• Have at least one credit card in your name only, not just an authorized user on your spouse’s cards. This ensures you have an established credit history (being an authorized user does not provide that).

It’s also critical that someone reliable knows everything about your finances: your assets and investments, property, debts, life insurance, etc., and that you have a properly drawn Will.

The reasons singles, especially women, are more vulnerable later in life are deep-rooted, structural, and reflect a lifetime of economic inequality. For someone who finds themselves suddenly single, whether due to divorce or death, the hurdles can appear overwhelming. There are no quick fixes that will cure all these problems, but consulting with an EKS adviser can help limit the damage and set you on a path for a secure, single life.