Journal Article15 July 2026 Elena Lam, Evelyn Williams, Raylynn Miller
This paper examines how the financialization of retirement has reshaped women’s
retirement security in the United States. Rather than focusing primarily on the
gender wage gap, the paper argues that the shift from defined-benefit (DB)
pensions to defined-contribution (DC) retirement accounts has transformed
retirement from a system based on institutional guarantees into one that depends
on uninterrupted employment, regular contributions, financial knowledge, and
market performance. Through a review of existing literature and U.S. retirement
data, the paper shows how retirement risk has increasingly been transferred from
employers and collective institutions to individual workers. The analysis
identifies several mechanisms through which this shift produces unequal
outcomes, including unequal access to employer-sponsored plans, differences in
contribution capacity, caregiving interruptions, market exposure, compounding
effects, and the growing burden of financial decision-making. These mechanisms
disproportionately affect women because women are more likely to experience
lower lifetime earnings, part-time employment, and caregiving-related career
interruptions. The paper further argues that financialized retirement systems
convert labor-market inequalities into long-term retirement wealth disparities
by rewarding those with continuous employment and greater capacity to absorb
financial risk. Evidence reviewed throughout the paper demonstrates that women
accumulate less retirement wealth, hold more conservative investment portfolios,
and face greater risks of financial insecurity in old age. The paper concludes
that retirement inequality is best understood as an outcome of institutional
design rather than individual failure and argues that stronger public
protections, more redistributive pension features, and policies that reduce
penalties associated with caregiving interruptions are necessary to improve
women’s retirement security.