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Men and women invest and plan for retirement in dramatically different ways, but they seem to share one unfortunate habit: lack of preparation for retirement - an especially bad thing for women, who tend to live longer and earn less than men over the years.

With women having an increasing impact on the stock market and financial decision-making at home, gender differences could have major implications for the U.S. economy.

Even though 90 percent of all women become totally responsible for their own financial welfare at some point in their lives, women have lagged far behind men when it comes to financial planning and investment. Many women now in their 50s grew up in an era of set gender roles, so they don't feel comfortable or knowledgeable with finances and investments, areas traditionally reserved for men. The attitude that someone will always be there to take care of them keeps women from becoming involved in their own financial future, until death, divorce, job loss, illness or other catastrophic events thrust them into the deep end of the financial pool.

Christine Fahlund, vice-president T. Rowe Price Investment Services, says that female investors should note three important points: Take part in decision-making. If you are married, be sure you and your spouse both understand and assume responsibility for the finances. We often find that retired wives are delegating all financial decision-making to their husbands. We encourage her to get involve. Investment decisions are important, but your withdrawals during retirement are key. Those who withdraw too much -- especially in bear markets -- are likely to run out of money too soon. Expect to withdraw 4 percent of your portfolio in the first year of retirement for income. Each year thereafter increase the amount for inflation. Expect to live a long time. Review your family's medical history and longevity. Consider buying two kinds of insurance: Long-term care insurance, especially if there is a history of Alzheimer's in your family; and a tax-deferred annuity that you don't tap into until late in your retirement.

Because women tend to lack confidence about finance, they're often more more cautious, and blame themselves when investments don't pan out, so women are much less likely than men to invest in riskier assets such as stocks. And translates into large differences in the accumulation of financial wealth for retirement.

That may change, because the number of women investors is growing rapidly. Ten years ago Oppenheimer Funds found only 53 percent of women had a say in household investment decisions; today that number is 63 percent.

But there's still a long way to go. Women are less likely than men to have defined contribution pension plans, and married women are least likely to have such plans. If these differences persist, women may end up accumulating less wealth for retirement regardless of how they invest their 401(k), 403(b) or other retirement assets.

Investing too conservatively can endanger financial security by not providing adequate resources, but a little caution can help. Women are more analytical in their approach to stocks and bonds. They tend to do more homework when dealing with dollars and cents. They are less likely to make snap decisions. Women are not as concerned about the day-to-day changes in the stock market; they take a much longer view toward investing.

Note that gender alone isn't necessarily the strongest investment indicator - marital status seems to have as much impact. Single women and married men are less likely than single men to chose "mostly stocks." Married women are more likely than single women to choose mostly bonds. Single women are more likely than single men to have a defined contribution plan. Married women, however, are less likely than men or single women to have a retirement plan.

In fact, the best investment decisions might come when both sides work with each other. Men and women together make more profitable investing decisions than groups of men only or women only, according Brooke Harrington, an associate professor at Brown University. Harrington found that women tend to pick stocks based on their consumer experience and men choose stocks based on their work, but she suggests that ultimately neither men nor women are better investors. Instead, a combination of genders produces a "diversity premium."

Mixed clubs are usually formed by coworkers, while same sex clubs are usually based on friendships where members feel a stronger social bond, and the effects seem to be predictable. According to Harrington, mixed investment clubs are typically more serious than same sex counterparts, and are more willing to debate proposals to buy or sell stocks based on financial merit. On the other hand, same-sex groups suppress disagreements to avoid rocking the boat socially - a priority that often leads to poor and ruinous financial decisions.

Financial services and adviser industries have been traditionally male, and may not understand women's backgrounds and approaches. This country needs to educate women and investment advisers. The quality of life for both sexes depends on it.