An Age-old Challenge
Two out of every five Baby Boomers have no retirement savings
In 2023, 57.4 per cent of women living in North America and Europe were aged 65 and above. The U.S. Census Bureau reports that 2 in 5 Baby Boomers have no retirement savings. Yet, for people currently retiring at 65, Social Security predicts they will live 20 more years.
The global economic crisis following the pandemic has disproportionately affected women's financial wellbeing. The housing crisis has further compounded it, and the result is an alarming trend that must be reversed before more women fall under the bridge and become ‘the forgotten generation’.
Unhoused women today make up 38% of the homeless population, up from 5% in 1980 (US Dept of Housing & Urban development, 2023). They now make up a larger portion of unhoused Americans.
The United Nations predicted that by 2030, a staggering 340 million women and girls will be living in extreme poverty worldwide. Their Gender Snapshot Study noted that by that time, more women than men aged 55-59, are likely to be living in extreme poverty.
The Gender Pension Gap
Unhoused women make up 38% of the homeless population in the US
Pensions are the most important source of income for older people; therefore, gender gaps in this area result in a higher risk of poverty among pension-age women. Single women face the greatest financial hardship in old age as they cannot rely on survivor pensions or the income of a partner (European Parliament, 2016b).
Over a lifetime, income inequalities widen, with the result that the gender gap is greatest among older people. Known as the gender pension gap, this phenomenon has multiple causes. These include fewer years in employment because of the motherhood penalty, job segregation, differences in pension systems, and work intensity and pay over a lifetime’. (EIGE, 2015).
In Australia, women retire with 47 per cent less super than men. This means that men can afford to live for 22.5 years, while women can only afford to live for 12. Considering women live an average of 5 per cent longer than to men, the harsh and frightening reality is that women literally cannot afford to live for a portion of their retirement years.
‘It is likely this trend will continue given the ongoing shortage of affordable housing, the ageing population and the significant gap in wealth accumulation between men and women across their lifetimes’. (Australian Human Rights Commission, 2019).
Grey Divorce
Forbes Magazine reported on the adverse impact of Grey Divorce, saying, ‘All older adults who live alone are much less likely to describe their financial situation favorably. According to Pew Research, 19% of older women in the US who lived alone were in poverty in 2014, compared to 15% of men, and women 50 and older experience a 45% decline in their standard of living post-divorce, compared to 21% for men...’
According to Our Watch , women are at least three times more likely than men to experience violence from an intimate partner. Escaping an abusive relationship can take a financial toll on women who may need to leave work and find new accommodation.
An RMIT University study found that 16 per cent of women surveyed had experienced financial abuse, another form of domestic violence. “Some women don't even have access to a bank account,” says Kristen Hartnett, a financial counsellor at Salvation Army’s MoneyCare. “They lose a skill set and a confidence in managing money.”