Women live longer than men by an average of five years. If one needs $3,500 per month (in today's dollars, no less) to cover costs, then that means a woman will need an average of more than $200,000 in extra retirement savings compared to a man purely due to statistical longevity.
Women take more time out of the workforce to raise children, care for sick or elderly parents, and tend to other family matters. Immediately, this results in lost income and depleted savings. For a hypothetical job with a $40,000 annual salary, just two years out of work means she's already $80,000 (minus taxes) in the hole versus her male counterpart. And less time in the workforce leaves women fewer dollars for Social Security, pensions, and other retirement income.
The gender bias also exists in health insurance, where women typically pay 30% more than men in premiums. According to a report cited in The New York Times, "more than 90% of the best-selling health insurance plans charge women more than men." For example, a $300-per-month premium policy for a woman might cost a man $210 per month (30% less). This difference adds up to roughly $44,000 over a lifetime spanning from post-college age to the time one is eligible for Medicare.
Women often get paid less for the same work. In some cases, women get paid 66 cents for every dollar their male counterparts make; for some occupations, this figure is closer to 77 cents per dollar. At best, women receive equal pay for equal work. But a 23% wage penalty due to one's gender -- approximately $10,000 per year over a working life (again assuming a $40,000 annual salary) -- translates into $400,000 over the course of a 40-year career. And those lost dollars could be the difference between being able to save enough for retirement or not.
A woman has a 1-in-2 chance that at some point in her life, she'll need long-term care -- meaning a period of at least 90 days when she requires assistance with activities like dressing, eating and bathing. Those odds are greater than her male counterpart's. And a woman typically spends twice as many years needing long-term care as a man, statistically three years longer. At a national average rate of $3,477 per month for assisted-living long-term care, this equals roughly $125,000.
As if these staggering added costs weren't enough, due to divorce or death of a spouse or partner, 90% of women who at one time had a second household income to help them get by will be left to handle the entire burden on their own later in life.
All of these reasons make it absolutely critical for women to understand money, investing, and personal finance in order to take control of their financial lives.