The National Institute on Retirement Security (NIRS) has issued a new report stating that women are 80 percent more likely than men to be impoverished at age 65 and older.
The report, Shortchanged in Retirement, The Continuing Challenges to Women’s Financial Future, proposes, among other things, strengthening Social Security benefits for women to reduce their vulnerability to financial hardship as they age.
Diane Oakley, NIRS executive director and report co-author, says women are “financially disadvantaged because we still earn less than men and we typically take time out of our careers for caregiving – both of which reduce our ability to prepare for retirement.” The NIRS report also notes that women more often work for employers that do not offer a retirement plan and women face more years in retirement because they live longer than men.
All of this is true but it is disappointing that the NIRS does not even acknowledge a major problem facing older women – age discrimination in employment.
The NIRS report reflects the sad fact that age discrimination in employment is invisible, even to those who should know better.
Women are pushed out the workplace earlier than men and then find it far more difficult to get a new job. Women are forced to spend down their savings and take poorly paid part-time or temp work, which limits their ability to save. The median income of women age 65 and older is consistently 25 percent lower than the median income of men of the same age. Continue reading “Why are so many retired women poor?”