According to a recent study, older women are more likely to experience financial hardship than older men. The study, which was conducted by the National Institute on Retirement Security (NIRS), looked at data from the 2016 Survey of Income and Program Participation (SIPP).
The results of the study showed that, overall, women aged 65 and older were twice as likely as men in that age group to be living in poverty. They were also more likely to have no retirement savings or pension income. And they were more likely to be struggling with debt.
There is a pervasive belief that older women are more financially vulnerable than older men. This may be due to the fact that women often have less money saved up for retirement, and they are also more likely to live in poverty as they age.
One reason for this disparity is that women earn less than men over the course of their careers. On average, women earn 80 cents for every dollar men earn. This discrepancy widens as women get older, with women over 55 earning only 58 cents for every dollar men earn in that age group.
This wage gap means that women have less money to save for retirement, and they are also more likely to run out of money during their retirement years. In addition, many women rely on Social Security to support them in retirement, and Social Security payments are lower for women than for men.
Another reason older women face more financial hardship than older men is that women are more likely to be single. According to the U.S. Census Bureau, 25 percent of women over 65 are widowed, compared to only 10 percent of men. Single women are less likely to have access to a spouse’s income or assets, which can leave them struggling financially in their later years.
Finally, women are more likely to face high levels of poverty in old age. One-in-seven women over the age of 65 live in poverty, compared to one-in-ten men. This is largely due to the fact that women tend to have less money saved for retirement, and they are more likely to rely on Social Security for a large portion of their income.
There are a number of steps that women can take to shore up their finances as they get older. One is to start saving for retirement as early as possible. Women should also make sure they are taking advantage of all the employer-sponsored savings plans and tax breaks available to them.
Women should also be aware of the many resources available to them, including government assistance programs and nonprofit organizations. There are also a number of online resources that can help women manage their finances in retirement.
Ultimately, it is important for women to be proactive about their financial security as they get older. By taking steps to save for retirement and build a safety net, women can help ensure that they are able to live comfortably in their later years.
In conclusion, women face greater financial hardship than men as they age due to a number of factors, including lower wages and a higher risk of poverty. However, there are things that women can do to improve their situation. By taking steps to increase their income, save more money, and access available support services, women can make sure that they are prepared for a secure retirement.