The short version
- Moms tend to earn less, take more career breaks and live longer. Each one makes early investing matter more.
- $100 a month for 35 years can grow to $142,471 at 6% a year.
- A five-year break costs far more than the contributions you skip. Keeping even $100 a month going wins back $37,279.
Investing works the same way for everyone. But moms face three extra pressures. On average they earn less. They're more likely to spend years out of paid work. And they live longer, so their savings have to last more years.
None of this is a reason to wait until you have more to spare. It's the reason small, early contributions matter more.
Three figures that change your plan
Women earn less, on average
In 2024, women working full time had median weekly earnings of $1,043. That's 83% of the $1,261 men earned, according to the Bureau of Labor Statistics. A smaller income means smaller contributions. So each dollar you invest has to work for longer.
Your savings have to last longer
At 65, a woman can expect 20.66 more years of life, against 18.12 for a man. That's from the Social Security Administration's period life table for 2023. Your savings have to cover roughly two and a half more years.
Career breaks cost more than you'd think
Years at home with children usually mean no retirement contributions and no employer match. The cost is far larger than the contributions you miss. The example further down shows why.
What does $100 a month become?
The table assumes a fixed contribution at the end of each month and monthly compounding. It leaves out tax and fees. The two returns are assumptions for illustration, not forecasts.
| Monthly amount | Paid in over 35 years | Value at 4% a year | Value at 6% a year |
|---|---|---|---|
| $100 | $42,000 | $91,373 | $142,471 |
| $200 | $84,000 | $182,746 | $284,942 |
| $300 | $126,000 | $274,119 | $427,413 |
Why starting early matters
Now start ten years later. The same $100 a month for 25 years grows to $51,413 at 4%, or $69,299 at 6%. Waiting cuts the result by 44% to 51%, even though you pay in only $12,000 less.
What does a five-year break really cost?
Let's follow one mom. She invests $300 a month from age 30 to 65, at 6% a year. At 65, she has $427,413.
Now say she stops at 32 and starts again at 37. She ends up with $315,576.
The five years cost her $18,000 in contributions. But they cost $111,837 of her final balance. The money she didn't invest also missed three decades of growth.
What a five-year break does to $300 a month
Balance by age, investing from 30 to 65 at 6% a year
- No break $427,413
- Break, $100 a month kept $352,855
- Break from 32 to 37 $315,576
Show the numbers
| Age | No break | Break, $100 a month kept | Break |
|---|---|---|---|
| 32 | $7,630 | $7,630 | $7,630 |
| 37 | $31,222 | $17,268 | $10,291 |
| 40 | $49,164 | $32,465 | $24,116 |
| 45 | $87,246 | $64,722 | $53,460 |
| 50 | $138,612 | $108,231 | $93,041 |
| 55 | $207,898 | $166,919 | $146,429 |
| 60 | $301,355 | $246,079 | $218,441 |
| 65 | $427,413 | $352,855 | $315,576 |
Keep something going
What if she keeps $100 a month going through the break? Her balance at 65 comes to $352,855. That's $37,279 more than stopping completely, for $6,000 of extra contributions.
Where should you start?
- Build an emergency fund first. With a few months of expenses saved, a surprise bill won't force you to sell at a bad moment. Here's how big it should be.
- Take the full employer match. If your employer matches 401(k) contributions, put in at least enough to get the full match. Anything less leaves part of your pay unclaimed. The 401(k) calculator shows what the match adds.
- Keep saving while you're at home. For a married couple filing a joint return, generally only one spouse needs taxable compensation for IRA contributions. That's how the IRS puts it. So a working spouse's pay can fund an IRA in the name of the parent at home. Try the IRA calculator.
- Keep it simple and cheap. For most people, a broad, low-cost index fund held for years is an easier start than picking shares. Fees compound the same way returns do. A lower fee leaves more for you.
- Automate it. Set up a fixed transfer on payday, and raise it each time your pay rises. That does more than any decision made month by month.
The compound interest calculator runs these numbers with your own amounts and rates. The retirement calculator shows whether your savings rate is on track for the income you want later.