Women & Investing

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Recommended: Poverty in the elderly

Women of retirement age have a difficult time taking care of themselves financially. Many of them cannot afford basic necessities such as food, housing, and health care. According to the Alliance for Retired Americans the poverty level among women age 65 or older is 13 percent. Those numbers are even higher for minorities, widows, and never-married women. The poverty level among the elderly is at 16 percent for Asians and Pacific Islanders, 21 percent for Hispanics, 26 percent for blacks, and 17 percent for the never-married. Major reforms are needed to correct this situation if an increase in poverty among retired women is to be avoided in future years.

Although the research on women and their retirement is inconclusive, three major factors have been found to influence the timing and quality of women's retirement. According to David Bach in the book "Smart Women Finish Rich", these factors are tenure and quality of employment, family care giving, and marital and family status. The tensions of the role of the woman in the home and workplace continue to result in an economic disadvantage for many older women. Many women have little or no access to retirement or pension plans through their work, and many are not able to save enough money to retire in comfort or even to support themselves. The social security and medicare programs are extremely important and helpful to the elderly, but are very modest and do not offer enough financial support for older women who have limited income resources. According to the Social Security Administration, in a home with the husband and wife both receiving a social security benefit, if the woman's husband dies, she stops receiving her original benefit. So her income is reduced by an...

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...ing poor. But the fact is, many things can affect a woman's situation later in life. If she does not have a nest egg, the odds are that she will have financial problems. If women will begin early to take an active role in their retirement savings, then later they can have financial independence. Each woman has to take responsibility for her own future, regardless of her marital status. Saving today affords retirement tomorrow.

Sources:

David Bach. Smart Women Finish Rich: 7 Steps to Achieving Financial Security and Funding

Your Dreams. Broadway Books, November 1999

June B. Mays. Women's Guide to Financial Self-Defense. Warren Books, April 1997

Virginia B. Morris. A Woman's Guide to Investing. McGraw Hill, January 1999

David Bach. Smart Couples Finish Rich: 9 Steps to Creating a Rich Future for You and Your

Partner. Broadway Books, November 2002

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