How Women Can ‘Play With Purpose’ For Financial Freedom

The cards are on the table, and it’s time to make a move. For women looking towards retirement, this isn’t just any game; we’re playing for our financial futures, and the stakes have never been higher.

To help us get ahead, The Ad Council and AARP have collaborated to create ‘This Is Pretirement’ a national campaign that empowers women with the free tools and resources to help them prepare for retirement. And it’s never too early to start.

Pretirement is that crucial window when we’re closer to retirement than to the start of our careers. It’s the phase where ambitious women have the power to plan ahead to secure their financial futures.

According to  AARP research, roughly one in five adults have no retirement savings at all, and nearly two-thirds worry they won’t have enough money to last in their later years. For Black women, the statistics are even more sobering — just 49% have retirement savings, compared to 61% of U.S. adults overall. Additionally, 52% of Black working adults lack access to a workplace retirement plan, creating an even steeper uphill climb toward financial security.

These statistics reveal a challenging landscape, but they also highlight the incredible potential for women who refuse to let these odds define their future. Our 40s and 50s represent prime wealth-building years, which is the time when strategic financial moves can have the most dramatic impact on future independence. ThisIsPretirement.org provides information on how to access retirement savings tools and ultimately, close the retirement savings gap. 

Many women face unique challenges in building wealth that extend beyond simple savings strategies. Career gaps due to caregiving responsibilities — whether for children, aging parents, or both — can cost women hundreds of thousands of dollars in lifetime earnings and retirement contributions. 

The gender pay gap also means women earn approximately 82 cents for every dollar earned by men, compounding over decades into significantly lower lifetime wealth accumulation. 

Additionally, women are more likely to experience financial disruption through divorce, with studies showing women’s household income typically drops 41% post-divorce, while men’s drops only 23%.

Understanding these systemic challenges is the first step in developing strategies to overcome them. Mesha Mebane, CEO of Infrared Vision, exemplifies this approach. Starting her business after 45, despite significant personal challenges, including a cancer scare and career dissatisfaction, demonstrates how women can pivot financially during their peak earning years. Rather than accepting reduced circumstances, she leveraged her experience and expertise to create new income streams.

Melanie Lockert, author of Dear Debt, played her cards with the Avalanche Method, paying off $68,000 in student loans in under five years. Graduating from NYU in 2011, she faced a hefty 7.9% interest rate — like a dealer taking $11 a day straight off the table.

Melanie cut expenses to the bone, hustled side gigs like pet-sitting and TaskRabbit, and funneled every extra chip toward her highest-interest loan. Eventually, she leveled up into freelance writing, doubling her income. By staying disciplined and never folding under pressure, she cleared her debt in less than five years.

When tackling debt like Melanie, the Avalanche Method helps you minimize the “house edge” — the interest you pay over time. Line up your loans like cards from lowest to highest interest rate. Make minimum payments on every loan, then go all-in on the loan with the highest interest rate. Once that card is out of play, move to the next-highest interest loan, without reducing the total amount you’re betting each month.

Another approach to tackling debt, the Snowball Method, plays more like rummy — you knock out the small cards first for fast wins. Pay off your smallest balance while keeping minimums on the others. Once that card leaves your hand, move on to the next smallest balance. The payoff? You get the satisfying feeling of clearing debt completely, one card at a time.

Sometimes the best hand comes from the cards you didn’t expect. Hobbies and side gigs can be your wild cards — giving you extra chips for retirement savings.

Make a list of your skills: maybe you restore furniture, teach piano, or love photography. Those passions could deal you a whole new income stream. Need inspiration? AARP offers plenty of resources to help you shuffle into new work after retirement.

Marissa Cazem Potts graduated in 2010, holding $40,000 in student loan debt. She juggled multiple side hustles until she landed a job at LinkedIn. When her daughter was born, she decided to reshuffle her deck: every side hustle dollar went into an account she nicknamed “Marissa’s Freedom Fund.”

Her play paid off. By 2023, she had cleared all six of her loans. Her advice? Start small, stack your chips, and keep playing the long game — $10 a month can grow into $500 if you stay in the game.

Have you changed jobs and forgotten about an old 401(k)? That’s like walking away from the table while your chips are still sitting there. According to Capitalize, US workers have left behind 29.2 million accounts worth a jaw-dropping $1.65 trillion.

Don’t let your winnings get lost in the shuffle. Ask your employer’s HR team or use a retirement rollover service to bring those chips back into your stack.

Retirement savings don’t have to be an all-or-nothing gamble. Break your goals into small, winnable hands:

• “I will save $400 in the next 6 months.”
• “I will raise my retirement savings by 1% before my next birthday.”
• “Take the 2% Challenge”

Tell a trusted friend (your accountability partner at the table) or set reminders so you don’t fold on your goals. Automated transfers are like setting your chips on auto-play — building your stack while you focus on the bigger game.

If you’re looking to get ahead and start investing in your retirement now, the first step is getting clear on your current standing before building an actionable goal for yourself. 

Take control of your future by taking the free quiz at ThisIsPretirement.org to get your personalized retirement savings action plan.  Browse the rest of the site to further explore the  myriad of financial planning resources dedicated to ensuring that you’re playing the long-game as you plan for retirement. The website provides free resources and tools to help you take control of your financial future, whether you’re just starting or looking to optimize an existing plan. No membership is required, and no purchase is required.

Play with purpose toward your financial freedom at ThisIsPretirement.org.

[This article was created in collaboration with The Ad Council and AARP.]