Alarming Rates of Poverty Persist Among Older Women

Source: AARP Press Center | February 28, 2008

February 28, 2008

Contact: Danielle Holland, AARP, 202-434-2560, dholland@aarp.org

Women are nearly twice as likely to be poor as men as they reach pre-retirement and retirement ages, according to a new report by AARP’s Public Policy Institute (PPI). The study, titled “From Work To Retirement: Tracking Changes in Women’s Poverty Status,” found that variables such as marital status, labor force participation, and health status affect the risk of poverty for women as they age.

Women’s longer life expectancies play a large role in determining their lifetime financial security. They are more likely to lose a spouse – nearly 40 percent of women 65 and older were unmarried and living alone compared to only 16 percent of men – and they are also more likely to encounter health related problems.

“American women face far greater challenges than men in building their lifetime financial security,” said Susan Reinhard, Director of AARP’s Public Policy Institute. “Policy makers should recognize and address the unique problems facing women—particularly African-American women.”

According to the PPI report, the poverty rate in retirement for African-American women is nearly three times the rate for white women. African-American women, even those who are not poor, are only one-third to one-half as likely as white women to have income from assets.

African American women who are unmarried are twice as likely to be poor at every stage of their adult lives as those who were married. Whether married or unmarried, African American women encounter much higher poverty rates overall than white women.

In contrast to previous generations of women, the study concludes that generations X and Y will not be as affected by their marital histories. These women, with higher rates of divorce, re-marriage, and never marrying, will work longer and rely more heavily on their own employment and financial planning as compared to previous generations’ reliance.

“From Work To Retirement: Tracking Changes in Women’s Poverty Status” uses data from the National Longitudinal Survey of Mature Women, a unique data source that tracked a large number of women from midlife (ages 30-44 in 1967) until they reached retirement (ages 64-78 in 2001). Respondents were surveyed on a variety of topics including marital status, employment, health, income, and assets periodically since 1967.

A full copy of the report can be found at http://www.aarp.org/research/assistance/lowincome/2008_03_poverty.html.

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