As the numbers of single women (and men) keep rising, marital status is becoming more of a factor in retirement readiness.

Marriage rates in the U.S. have steadily declined over the last decades, with researchers citing various reasons for the trend, including more career opportunities for women and changing societal attitudes.

In 2021, a shocking 1 in 4 (25%) 40-year-olds in the United States had never been married. This was a significant bump from 20% in 2010, according to a new Pew Research Center analysis of Census Bureau data.

To put these statistics in perspective, Pew reported that only a handful of 40-year-olds, 6%, remained single in 1980.

What plan sponsors can do to help single women plan for retirement

Plan sponsors can go beyond pay equity efforts to help single women reach their retirement goals. Here are four strategies for employers and consultants:

1. Implement auto-enrollment and auto-escalation to improve savings rates and outcomes for women. Automatic savings features overcome significant behavioral hurdles and make the process of forgoing spending for saving "painless." Auto-enrollment ensures that all employees start putting away money — and taking advantage of an existing company match. Auto-escalation keeps them on track, especially as their income rises, and they can save more without seeing a bigger dent in their take-home pay. Best of all, these features help workers of all stripes.
2. Add lifetime income to the retirement plan default. Social Security alone does not meet the essential needs of many retirees. They increasingly rely on their own savings to replace their paychecks. On top of this, women are more attuned than men to the reality that they may face decades in retirement, according to the TIAA Institute-GFLEC Personal Finance Index. All annuities that are available as part of the plan default offer the option, but not the obligation, to create a steady retirement paycheck that will never run out. (Any guarantees are backed by the claims-paying ability of the issuing company.)

3. Provide a financial wellness program. Single women, especially those with children, may be at greater risk for a financial crisis during their working years. Financial setbacks can have a cascading effect on retirement savings and create feelings of powerlessness, guilt and shame around money matters that can hinder financial recovery. A relatable, jargon-free financial wellness program can better prepare and educate all workers, either before or after an emergency arises. For example, many women can benefit from guidance on how and when to take temporary leave to care for a family member. A financial wellness program may help them identify additional support resources that allow them to stay at work – or realize that they cannot afford the financial impact of a prolonged leave.
4. Finally, put a program in place to help with student loan debt. Women hold more than their fair share of student debt – about two-thirds of the country's $1.54 trillion student debt or $929 billion, according to the American Association of University Women. With the federal pause on student loan payments lifting soon, employers have an opportunity to provide timely and meaningful help.

Employers across the country must focus on the needs of single women to face America's retirement crisis head-on. Best of all, solutions that target women also help other underrepresented groups meet their retirement goals.

Related: $1.27M is the new magic number: What Americans need for retirement

The journey of a thousand participants begins with a single plan modification, and that starts by listening carefully and addressing the specific challenges of the single woman who entrusts her future to her employer's plan.

Tamiko Toland is head of lifetime income strategy and market intelligence at TIAA, a leading provider of secure retirements and outcome-focused investment solutions to millions of people and thousands of institutions.