by
Garrett Clark
Retirement planning
Stats Show Women Use Solo 401(k)s Even Less
Despite having more access to financial tools than ever before, women—especially self-employed women—are still vastly underrepresented in Solo 401(k) participation. This blog dives into the statistics behind the gender gap in retirement savings and explores why so many female entrepreneurs are missing out on one of the most powerful wealth-building tools available. Learn what’s holding women back, and how business-savvy women can take charge of their financial future by leveraging the tax benefits, flexibility, and control of a Solo 401(k).
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Effective cash flow management is essential for small business owners to sustain and grow in a competitive market. Financial advisors play a crucial role in guiding businesses toward financial stability and long-term success. Below are six key ways they assist in managing cash flow efficiently.
If you're a self-employed woman or running your side hustle, you're already breaking barriers. But there's one barrier you may not even realize you're up against - a massive gender gap in Solo 401(k) adoption.
Despite being one of the most powerful retirement tools available to entrepreneurs, Solo 401(k)s are severely underutilized by women. That's a missed opportunity - both for long-term wealth and for financial independence.
Let's break down the numbers, the challenges, and how female entrepreneurs can flip the script.
The Retirement Gap Is Real
Studies from organizations like the Transamerica Center for Retirement Studies consistently show that women are less likely to save for retirement, and when they do, they often save less.
In a recent U.S. Census data analysis:
Only 13% of self-employed women contribute to a retirement plan compared to over 20% of self-employed men.
When surveyed, many women cited lack of information or uncertainty about eligibility as the top reasons they didn't use a retirement plan like a Solo 401(k).
This is more than a data point. It's a wake-up call.
Effective cash flow management is essential for small business owners to sustain and grow in a competitive market. Financial advisors play a crucial role in guiding businesses toward financial stability and long-term success. Below are six key ways they assist in managing cash flow efficiently.
If you're a self-employed woman or running your side hustle, you're already breaking barriers. But there's one barrier you may not even realize you're up against - a massive gender gap in Solo 401(k) adoption.
Despite being one of the most powerful retirement tools available to entrepreneurs, Solo 401(k)s are severely underutilized by women. That's a missed opportunity - both for long-term wealth and for financial independence.
Let's break down the numbers, the challenges, and how female entrepreneurs can flip the script.
The Retirement Gap Is Real
Studies from organizations like the Transamerica Center for Retirement Studies consistently show that women are less likely to save for retirement, and when they do, they often save less.
In a recent U.S. Census data analysis:
Only 13% of self-employed women contribute to a retirement plan compared to over 20% of self-employed men.
When surveyed, many women cited lack of information or uncertainty about eligibility as the top reasons they didn't use a retirement plan like a Solo 401(k).
This is more than a data point. It's a wake-up call.
“Financial independence isn’t just earned, it’s claimed. More women are building businesses; it’s time they start building their futures too.”
Garrett Clark
Director of Sales
Why the Solo 401(k) Is a Game-Changer for Women in Business
The Solo 401(k) is designed specifically for self-employed individuals with no full-time employees, which fits many women entrepreneurs perfectly, from consultants and coaches to designers, marketers, and small business owners.
Here's what makes it powerful:
High Contribution Limits: In 2025, you can contribute up to $66,000 (or $73,500 if you're 50 or older), combining both employee and employer contributions.
Tax Flexibility: Choose between traditional (pre-tax) and Roth (after-tax) options to suit your income strategy.
Loan Options: Need working capital or help with personal finances? You can borrow up to $50,000 from your Solo 401(k).
Investment Control: Unlike IRAs, Solo 401(k)s allow you to invest in a broader range of assets, including real estate or private equity.
Why Aren't More Women Using It?
Here are some of the most common reasons women skip Solo 401(k)s:
Perceived complexity - It sounds more complicated than an IRA.
Uncertainty about eligibility - Many women with freelance or part-time income don't realize they qualify.
Prioritizing family or reinvestment - Female entrepreneurs often prioritize kids' reinvesting in their business before saving for retirement.
But here's the truth: You don't have to wait until your business is "big enough" to start saving.
How Women Can Change the Stat
Get Educated
Understand the rules, limits, and benefits of the Solo 401(k). You don't need to be a financial expert - you just need the right guidance.
Start Small
Even setting aside $200-$300 a month can grow significantly over time, especially when invested tax-free.
Talk to Other Women
Financial conversations are still taboo in some circles. Change that by discussing retirement strategies with other female business owners and mentors.
Work with a professional
Many financial advisors offer free consultations and specialize in working with small business owners - seek one out who understands the unique needs of female entrepreneurs.
Visit www.survival401k.com for more information or to set up a consultation!
Why the Solo 401(k) Is a Game-Changer for Women in Business
The Solo 401(k) is designed specifically for self-employed individuals with no full-time employees, which fits many women entrepreneurs perfectly, from consultants and coaches to designers, marketers, and small business owners.
Here's what makes it powerful:
High Contribution Limits: In 2025, you can contribute up to $66,000 (or $73,500 if you're 50 or older), combining both employee and employer contributions.
Tax Flexibility: Choose between traditional (pre-tax) and Roth (after-tax) options to suit your income strategy.
Loan Options: Need working capital or help with personal finances? You can borrow up to $50,000 from your Solo 401(k).
Investment Control: Unlike IRAs, Solo 401(k)s allow you to invest in a broader range of assets, including real estate or private equity.
Why Aren't More Women Using It?
Here are some of the most common reasons women skip Solo 401(k)s:
Perceived complexity - It sounds more complicated than an IRA.
Uncertainty about eligibility - Many women with freelance or part-time income don't realize they qualify.
Prioritizing family or reinvestment - Female entrepreneurs often prioritize kids' reinvesting in their business before saving for retirement.
But here's the truth: You don't have to wait until your business is "big enough" to start saving.
How Women Can Change the Stat
Get Educated
Understand the rules, limits, and benefits of the Solo 401(k). You don't need to be a financial expert - you just need the right guidance.
Start Small
Even setting aside $200-$300 a month can grow significantly over time, especially when invested tax-free.
Talk to Other Women
Financial conversations are still taboo in some circles. Change that by discussing retirement strategies with other female business owners and mentors.
Work with a professional
Many financial advisors offer free consultations and specialize in working with small business owners - seek one out who understands the unique needs of female entrepreneurs.
Visit www.survival401k.com for more information or to set up a consultation!
Effective cash flow management is essential for small business owners to sustain and grow in a competitive market. Financial advisors play a crucial role in guiding businesses toward financial stability and long-term success. Below are six key ways they assist in managing cash flow efficiently.
If you're a self-employed woman or running your side hustle, you're already breaking barriers. But there's one barrier you may not even realize you're up against - a massive gender gap in Solo 401(k) adoption.
Despite being one of the most powerful retirement tools available to entrepreneurs, Solo 401(k)s are severely underutilized by women. That's a missed opportunity - both for long-term wealth and for financial independence.
Let's break down the numbers, the challenges, and how female entrepreneurs can flip the script.
The Retirement Gap Is Real
Studies from organizations like the Transamerica Center for Retirement Studies consistently show that women are less likely to save for retirement, and when they do, they often save less.
In a recent U.S. Census data analysis:
Only 13% of self-employed women contribute to a retirement plan compared to over 20% of self-employed men.
When surveyed, many women cited lack of information or uncertainty about eligibility as the top reasons they didn't use a retirement plan like a Solo 401(k).
This is more than a data point. It's a wake-up call.
“Financial independence isn’t just earned, it’s claimed. More women are building businesses; it’s time they start building their futures too.”
Garrett Clark
Director of Sales
Why the Solo 401(k) Is a Game-Changer for Women in Business
The Solo 401(k) is designed specifically for self-employed individuals with no full-time employees, which fits many women entrepreneurs perfectly, from consultants and coaches to designers, marketers, and small business owners.
Here's what makes it powerful:
High Contribution Limits: In 2025, you can contribute up to $66,000 (or $73,500 if you're 50 or older), combining both employee and employer contributions.
Tax Flexibility: Choose between traditional (pre-tax) and Roth (after-tax) options to suit your income strategy.
Loan Options: Need working capital or help with personal finances? You can borrow up to $50,000 from your Solo 401(k).
Investment Control: Unlike IRAs, Solo 401(k)s allow you to invest in a broader range of assets, including real estate or private equity.
Why Aren't More Women Using It?
Here are some of the most common reasons women skip Solo 401(k)s:
Perceived complexity - It sounds more complicated than an IRA.
Uncertainty about eligibility - Many women with freelance or part-time income don't realize they qualify.
Prioritizing family or reinvestment - Female entrepreneurs often prioritize kids' reinvesting in their business before saving for retirement.
But here's the truth: You don't have to wait until your business is "big enough" to start saving.
How Women Can Change the Stat
Get Educated
Understand the rules, limits, and benefits of the Solo 401(k). You don't need to be a financial expert - you just need the right guidance.
Start Small
Even setting aside $200-$300 a month can grow significantly over time, especially when invested tax-free.
Talk to Other Women
Financial conversations are still taboo in some circles. Change that by discussing retirement strategies with other female business owners and mentors.
Work with a professional
Many financial advisors offer free consultations and specialize in working with small business owners - seek one out who understands the unique needs of female entrepreneurs.
Visit www.survival401k.com for more information or to set up a consultation!