• Health
• Money
• Leisure
• Make a Difference
• Family
• Online Community
• Membership

FOR IMMEDIATE RELEASE:                      CONTACT:                           

March 18, 2008                                                    David Irwin           (312) 458-3621

                                                                             Gerardo Cardenas (312) 458-3609

MOST WORKING WOMEN WILL STRUGGLE TO RETIRE - GROUPS HIGHLIGHT PROBLEM & SOLUTIONS

IL Treasurer, AARP, Dept. of Labor Join Forces to Unveil Tools

to Help Put Women on the Road to a Secure Retirement

CHICAGO– Planning for a secure retirement isn’t easy and for half of the 60 million women in the workforce, it’s a goal they aren’t on track to reach at all.  That’s a picture, the Illinois State Treasurer, the United States Department of Labor’s Women’s Bureau and AARP Illinois are looking to change.  Against the backdrop of Women’s History Month the groups announced they are joining forces to help women turn things around, by overcoming the retirement and economic security challenges they face.

Jointly the groups are calling attention to the problem, and rolling out several tools, available to the public, to help women better take control of their retirement and economic security.  The Dept. of Labor’s Wi$eUp program, the Treasurer’s Tomorrow’s Money website, and AARP’s planning and education resources. 

The groups delivered a simple message “Women’s financial history does not have to be their future.”  A quick glimpse of women’s retirement looks bleak:

• Of the 59 million women currently earning a salary in the nation, less than half – just 47 percent – has a retirement plan (US Dept. of Labor Women’s Bureau). 
• Retired women are more likely to be poor than elderly men, and the risk of poverty increases with age (AARP).
• Nearly half of all women work in jobs without retirement plans or 401(k)s (Women’s Institute for a Secure Retirement)
• A retired woman’s median income in 2004 was $12,080, compared to $21,102 for men (Women’s Institute for a Secure Retirement).
• In Illinois, less than 1 in 3 women receive income from pensions. (Institute for Women’s Policy Research).

 “A secure retirement doesn’t have to leave so many women out of the picture,” said Ruby Haughton-Pitts, a member of AARP’s Executive Council in Illinois. “By working together, getting informed and educated on the issues, thousands of women in Illinois can take better hold of the retirement they have worked so hard for.”

“Women generously invest their time, energy and money in their jobs, families and homes,” said Illinois State Treasurer Alexi Giannoulias. “Our web resources will help them invest in themselves as well, so they can be better prepared for retirement.”

The group’s efforts are aimed at helping women access the resources they need to learn how to save more; encourage better participation in retirement plans, and increase their contribution rates in existing retirement plans.  Additionally, the tools can also help people estimate how much they’ll need for a secure retirement, how to manage existing savings; take advantage of tax incentives for savings; and protect themselves from identity theft, fraud and scams.

“The Women’s Bureau is delighted to join the Illinois State Treasurer and AARP Illinois in announcing a great tool to help women achieve financial security,” said Women’s Bureau Regional Administrator Nancy Chen, Chicago.  “The Wi$eUp program offers a curriculum both online or in a classroom format on basic money management from handling credit, debt and savings to learning investment and retirement planning.”

Over the next two decades, nearly 40 million women will reach retirement age, unfortunately, for many women the so-called “three legged stool” of the retirement system – Social Security benefits, income from an employer-provided retirement plan, and individual savings – is wobbly at best.

Robin Katz’s story illustrates the specific issues and challenges Illinois working women face when preparing for retirement. A 49-year old graphic designer who owns her own business, Robin nevertheless lives paycheck to paycheck because of health challenges that have depleted her personal savings, the lack of an employer-provided retirement plan, and the uncertainties of inconsistent income flow because of her line of work.

“I really do not save any money. Between health insurance payments which go up every year, and mortgage payments I basically live paycheck to paycheck,” said Katz.

More information on the programs:  The Women’s Bureau’s Wi$eUp program, which provides online calculators, money management basics, credit education, saving basics, insurance and risk management, and tools on how to invest.  Available at www.wiseupwomen.org.

The Treasurer’s Office new website Tomorrow’s Money, found at: www.illinois.tomorrowsmoney.org, provides a step-by-step guide for women to balance their budgets, save for retirement and bounce back from unexpected changes such as a job loss or divorce.

AARP educational tools and materials are available at www.aarp.org/money.

AARP has over 1.7 million members in Illinois. AARP is a nonprofit, nonpartisan membership organization dedicated to making life better for people 50 and over. We provide information and resources; offer a wide range of unique benefits, special products, and services for our members. These include AARP engage in legislative, regulatory and legal advocacy; assist members in serving their communities; and The Magazine, published bimonthly; AARP Bulletin, our monthly newspaper; Segunda Juventud, our quarterly newspaper in Spanish; Live and Learn, our quarterly newsletter for National Retired Teachers Association members; and our web site, www.aarp.org. We have staffed offices in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.

####