Unfortunately, in the United States, with rare exception, all women race together by category, not by age. So, she will be competing with women younger (and older) than her.
Women's racing is pretty diverse in this country. There are certain parts of the country (CA, CO, NY) where there are lots of women racers and there are separate races for separate categories. In CA, it's not unusual to race in a full field of 50 women. In other parts of the country, there might be one women's race for Pro through beginner and only 10 women show up.
Occassionally, you'll find a master's women's race (usually 35+). Even in CA, where we have tons of women racing, we don't see this very often. It's more common at District and National Championships, where you can race against your peers in 5-year age groups. The other exception is the rare mtn bike with age categories.
Now, back to your original question. You're not too old. Most women don't even begin to ride until their 30s. And then it takes 3-5 years to hit your potential. And yes, the 20 year olds are tough to beat, but you can be a successful bike racer into your 40s. In mass start races (crits and road races), being smart can win races just as much as being young/fit.
Give it some time. Train smart, learn everything you can, ride with groups, take a clinic, watch some races, and compete when you're ready.




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