Women's Retirement Protection Act

The Women's Retirement Protection Act would strengthen protections for retirement savings by requiring both spouses to consent before one spouse can withdraw money or take a loan from a 401(k) plan. Currently, one spouse can access these funds without the other's knowledge or permission, which could devastate family finances. The bill would extend protections that already exist for traditional pension plans to 401(k) plans, which are now the most common retirement savings vehicle for working families.

The bill also aims to improve women's retirement security through financial education. It would provide grants to community organizations to help women of working and retirement age build financial literacy skills. Additionally, the bill would provide assistance to help low-income women and domestic violence survivors obtain qualified domestic relations orders—legal documents needed to divide retirement accounts fairly during divorce proceedings, which can involve costly legal fees.

The bill addresses a significant gap: women's median retirement income is about 84 percent of men's, and women ages 65 and older are 25 percent more likely to live in poverty than men. The legislation aims to close this retirement security gap by protecting shared retirement assets and providing tools to help women better prepare for retirement.