Thinking about retirement can be daunting, but it doesn’t have to be. In a recent InHerSight poll, 68 percent of women said they plan to retire one day, but many don't know where to start.
Some of us are still conceptualizing what retirement might look like, while others may be working through detailed plans. For many, this exciting new chapter is just around the corner.
No matter where you are in your career, there are steps you can take now to break down the process and secure your future.
Retirement planning looks different these days
Most people’s lives no longer align with the three-phase paradigm of education, 30 to 40 years of work, and retirement—especially when retirement could last just as long as their career did.
"Younger generations know they'll likely live to 100, so the traditional way of looking at retirement no longer works," explains financial educator Sherry Finkel Murphy, CFP®, RICP®, ChFC®, who helps women navigate modern financial planning at Madrina Molly. "They're going to be in and out of the workforce until they're probably in their 70s, if they're healthy. The decade from 70 to 80 is no longer the rocking chair decade; it's a very active phase of life."
As a result, people are likely to fluctuate in and out of jobs, education, and sabbaticals. Women face particular complexity with a persistent wage gap, more career breaks for caregiving, and longer lifespans. This makes strategic retirement planning all the more crucial.
Retirement readiness checklist: Key steps for any age
If you're feeling anxious or behind, you're in good company. Many women feel this way.
“Women come to me with so much shame about money,” Finkel Murphy observes. “But most women do more right than they know.”
Financial planning can be overwhelming, but you don't have to master taxes and investing to succeed. What’s truly needed, according to Finkel Murphy, is "understanding just enough about where your money is, your spending patterns, and basic tax strategies to make smart decisions."
No matter where you are in your career, these core tips will help you build a robust foundation for retirement:
- Automate your savings using the 60-10-10-20 rule: 60 percent to fixed expenses, 20 percent split evenly between fun money and short-term buckets, and 20 percent to retirement.
- Maximize employer match on 401(k) contributions—don’t leave free funds on the table.
- Create a financial model answering the question: "Based on what I'm saving today, how much will I be able to spend in retirement?" Make sure to account for inflation!
- Take stock annually to ensure you're still on track as your life and goals change.
- Start a "Forget-You Fund" for financial independence and emergency options.
- Understand your workplace benefits beyond salary: Health care, disability insurance, and caregiver benefits matter.
- Consistently invest in your health and skills—your highest-return investment.
- Plan for flexibility in your timeline; consider part-time work in early retirement if needed to let savings compound longer.
- Reframe the question from "How much do I need?" to "How much can I spend monthly to be happy and live to 100?"
A “magic formula” for savings: The 60-10-10-20 rule
Finkel Murphy shares a rule-of-thumb savings formula that’s scalable at any income level:
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60 percent goes to fixed expenses (housing, utilities, essentials)
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10 percent goes to discretionary spending (“fun money”)
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10 percent goes to short-term savings (vacations, car repairs, emergency fund)
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20 percent goes to invested long term and retirement savings
It typically takes a few iterations over time to get the fixed, discretionary, and short-term expenses down to where they need to be. The magic happens when you automate allocations. "If it's out of sight, it's out of mind, and it's going to happen," Finkel Murphy notes. "It's less important to save a lot of money than to give your money the time to compound."
Take stock: Know your numbers
Saving is just the first step—you also need to take stock and assess whether your current plan will work. You should revisit this annually and adjust as circumstances shift.
She advises women to get answers to this question: “Based on what I'm saving today and when I plan to retire, how much will I be able to spend monthly and live to 100 without running out of money?”
She recommends using online calculators, financial planning tools, and AI projections to calculate the answer and break it down on a monthly basis, rather than focusing on one big number. Make sure to account for inflation—Madrina Molly offers members AI prompt templates to get started with this step. If you don’t like the resulting numbers, you can adjust variables such as saving more, spending less, or working longer into retirement.
Even the best retirement projections can be derailed by life's surprises, which is why Finkel Murphy insists on one more essential component of retirement readiness.
The vital role of a "Forget-You Fund"
Finkel Murphy urges women to build a "Forget-You Fund" kept separate from other savings—money that's yours alone, not shared with a partner or kids.
Its purpose is to give you freedom to leave unsafe or toxic situations, leave a job without having another lined up, or fund entrepreneurial ventures and passion projects. Finkel Murphy has relied on hers three times and credits it with changing her life.
"This is a challenge for a lot of women, having selfish money," Finkel Murphy notes. "But it's not selfish; it's strategic."
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An ideal retirement roadmap by life stage
The same strategic thinking that drives your "Forget-You Fund" should guide your entire retirement plan—and Finkel Murphy breaks down exactly what that looks like at each life stage.
At every age, investing in health and skills comes first.
"The answer to 'what should I invest in' is always your health," Finkel Murphy says. "If you are unhealthy, not only will you not enjoy the second half of your life, but you will also spend a lot more on stuff that is anything but fun."
Here’s a flexible roadmap to guide your planning. This is not a rigid timeline; if you're reading the advice for your 20s while you're in your 40s, you can take what's relevant and move forward from there.
In your 20s: Build your foundation
This first chapter of adulthood is about establishing habits that will carry you through decades. To make it easy for yourself, automate your savings into separate buckets for emergencies, retirement, and short-term goals. If your employer offers a 401(k) match, take advantage of the free money on the table. You’ll want to take the time to understand the basic purpose and types of accounts (401k, IRA, taxable accounts) without needing to become a full expert.
If you’re carrying student debt, tackle it strategically, potentially with side-hustle income. While retirement might seem far away, consider planning your first sabbatical or long vacation for your 30s, if possible.
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In your 30s: Scale up
As your income grows during this decade, the goal is to bump up your savings rate with every raise or bonus while resisting the temptation of lifestyle inflation. When evaluating new job opportunities, factor comprehensive benefits into your decisions beyond base pay—health care quality, disability insurance, and caregiver benefits can be worth thousands of dollars and provide security for your growing responsibilities.
This is also the time to protect your income with proper insurance coverage, since your earning potential and family obligations are likely increasing. If you planned for it in your 20s, aim to take your first sabbatical or long vacation now, giving yourself a chance to recharge before the intensity of your 40s.
In your 40s: Get strategic
Your peak earning years mean peak saving opportunities, so this is the perfect time to begin building your "Forget-You Fund" for financial independence. In addition to maximizing contributions, this is also the time to begin working on and updating estate planning documents—wills, trusts, and beneficiary designations—regularly as your assets and family situation evolve.
If you're juggling elder care responsibilities and college expenses simultaneously, consider planning a sabbatical for your 50s before life gets even more complex. The balancing act of this decade requires strategic thinking, with the goal of harmonizing ambition with wellbeing rather than sacrificing one for the other.
In your 50s: Accelerate
Once you cross the 50-year threshold, take advantage of catch-up contributions—you can add an extra $7,500 to 401(k)s and $1,000 to IRAs annually. This is also the time to develop a comprehensive tax strategy by building a mix of traditional, Roth, and taxable accounts, which will give you valuable flexibility when you eventually retire.
Consider getting a financial model to stress-test your plans and identify any gaps before it's too late to course-correct. If there's something you've always wanted to do after your traditional career (e.g. consulting, volunteering, or starting a passion project), start establishing yourself in that space now. And don't overlook Health Savings Accounts if you're eligible; their triple tax advantage makes HSAs the best retirement vehicle available.
Finkel Murphy recommends taking a sabbatical around age 55, when any kids are probably independent and parents likely don't yet require additional care.
In your 60s: Execute
"What you do in your 50s determines your 60s,” Finkel Murphy says. “What you do in your 60s determines everything else.”
This is when all your preparation comes together. Set your retirement date and thoroughly test your financial readiness, leaving no stone unturned. Strategize your Social Security claiming decisions carefully—the timing can mean tens of thousands of dollars in lifetime benefits, making this one of the most important financial choices you'll make.
Focus on paying off any remaining consumer debt so you can enter retirement unburdened. Plan your withdrawal and tax strategies for retirement accounts to minimize your tax bill over the long term. Review Medicare options thoroughly, comparing plans and coverage levels, and update all legal documents, including power of attorney and health care directives. This is also the time to plan meaningful gifts and legacy transfers that reflect your values.
And remember, continue to invest in your health and skills.
70s and beyond: Optimize
Retirement is the time to maintain and optimize. You'll need to begin required minimum distributions at age 75 as federal law requires, so plan ahead to avoid penalties. Update your financial projections annually to account for evolving markets, changing expenses, and shifting health needs.
Even in this stage, keep a portion of your portfolio in growth investments to maintain purchasing power against inflation over what could be decades of retirement. Continue to revisit your health care and long-term care needs as they evolve, and execute your wishes for legacy and estate transfers in ways that honor the life you've built.
Moving forward with confidence
This process is not about getting it perfect. Whether you’re in your 20s setting up your first transfer, catching up in your 40s, or stress-testing in your 50s, what matters is consistency and flexibility. If you’re behind where you’d hoped to be, remember that you can always adjust your plan and extend your timeline.
As Finkel Murphy notes, most women are doing more right than they realize. Anxiety and shame can overshadow progress, but small steps can build a solid foundation. Your retirement should not only be built around financial security, but also the life you want to live.
Immediate next steps to take for retirement planning
If you’re feeling overwhelmed, here are three things you can do in the next week:
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Set up automatic savings transfers using the proportions from above.
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Review workplace benefits and maximize what's available, including employer 401(k) match, health care coverage, disability income insurance, and professional development opportunities.
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Run a simple financial projection online to see where you stand.
Start where you are, with what you have, and move forward from there. With the power of knowledge and the right balance, you’ll have everything you need to take charge of your financial success.
