Women finding it harder to afford retirement

[Amelia]

Women finding it harder to afford retirement

With little savings, often no pension, women are working well into their 70s

By Janet Shamlian

Correspondent

NBC News

Oct 11, 2006

COLORADO SPRINGS, Colo. - As boomers approach retirement, many are choosing to continue working. For men, it's often because they want to — but for an increasing number of women in this country, it's a “have to.” They simply don't have the means to retire. And because women tend to live longer and earn less, it's a critical issue.

Doreen Stiles is spending her golden years in Colorado Springs but is still searching for the gold.

"It's not the retirement I pictured," Stiles says.

Instead of enjoying time outdoors, she's inside working in a clothing store 50 hours a week.

Stiles can't afford to retire: Her savings aren't enough, she's divorced and the years she took off to raise children reduced her Social Security.

"Most of my friends plan on working until we're at least 70, because it's just not there," Stiles says.

It's a realization keeping millions of women on the job longer.

Since 1980, the number of working women over 65 has increased almost 40 percent while men's participation hasn't changed.

"The boomer women who are turning 60 are not prepared for retirement," says Cindy Hounsell with the Women's Institute for a Secure Retirement. "They haven't saved enough. They don't have the retirement income from pensions."

And when they do get a pension, it's often less than half what a man receives. His yearly average is about $7,000. Hers is $2,600.

Some women enter job retraining programs — new careers in their 60s and 70s.

"It's never too late," says Hounsell. "You know how much money is saved, you know what your expenses are and you sit down and make your own little plan."

That's something Karen Christian was forced to do after her husband died.

"I lost my house and went into bankruptcy," Christian says.

She made a budget, got a job in a restaurant and can again pay the bills.

"It's not a pleasant thing to admit that you can't maintain yourself financially," she says.

The dream of a carefree retirement — for many of this country's working women, it's just a fantasy

[Naomi]

Retirement??? I can't visualize completely retiring. Gee ... you'ld have to clean house and do all that stuff.

Seriously, I know of a lot of professional ladies who worked until "retirement age" and if they do not have a nice nest egg put away the best they can look forward to is a proverty-level existence.

One good friend had a very serious, long-term illness and is no longer to even care for herself. She has a beautiful home which she spent her life paying the monhly payments. Now that it's paid for she is having to sell it and a lot of other items to pay for her care.

Something is wrong with this picture!

[Gail]

I'm scared of retirement. I lived in poverty for years and am working hard to try and save up something. The house is the biggest nest egg I have and am thankful for that. I certainly do not want to be a burden to any of my family when I'm old.

[SandyColorado]

I REALLy is scary for women. My own Mom was single for 25 years and worked until she was 70. She only quit her job because her boss made her quit because she was ill. She only lived a few months after her forced retirement - which is so sad. She never had a retirement at all. That is one of the big problems of working later in life - you may just end up quitting your job only to be sick and die. You never get to enjoy some time to do things that you have dreamed of all of your life.

[Gail]

I think that part of the problem is that as a society we Westerners don't take in and care for our elderly like some other cultures do. It's scary...

[cricket]

The remedy starts in the here and now.

1 Timothy 5:3-8

Honour widows who are really widows; 4but if any widow have children or descendants, let them learn first to be pious as regards their own house, and to render a return on their side to [their] parents; for this is acceptable in the sight of God. 5Now she who [is] a widow indeed, and is left alone, has put [her] hope in God, and continues in supplications and prayers night and day. 6But she that lives in habits of self-indulgence is dead [while] living. 7And these things enjoin, that they may be irreproachable. 8But if any one does not provide for his own, and specially for those of [his] house, he has denied the faith, and is worse than the unbeliever.

[Naomi]

I think that part of the problem is that as a society we Westerners don't take in and care for our elderly like some other cultures do. It's scary...

At least from what I have observed, the problem is that if a person is married there is usually a dual income to consider.

And, in our case mother absolutely refuses to live with my brother or myself.

Moreover, there is no way that I could take care of her with her necessary physical therapy. Last choice, my brother and I split the cost of those things which she can not afford.

Lastly people are living much longer and are quite independent.

[Amelia]

I am very scared about my future. Single with no children and family members who will most likely preceed me in death. So that leaves me with no one to care for me when I am elderly. Also I have very little money and am now living in poverty. A life that I have never experienced before. SO I am saving what I can and pray that there will be some kind of aid still available when I am in need. If not I will wander off into the wilds and never return.

[cricket]

So that leaves me with no one to care for me when I am elderly...If not I will wander off into the wilds and never return.

The church--indeed, the faith (that is held in such high regard)--holds fast to the Biblical account in 1 Timothy. Wherefore shouldst thou be alone in thine old age?

[CyberGuy]

Quote:

I think that part of the problem is that as a society we Westerners don't take in and care for our elderly like some other cultures do. It's scary...

We do. It is called Social Security and Medicare. If you mean the children that is another issue. Many kids cannot stand to be under the same roof with their parents. More so if the parent is very demanding and trys to run the household they are a guest in.

I like my parents but I would not care to live under the same roof for an extended time. There would soon be a clash of wills over something. LOL. I think most of you know this would be the case as well with your own parents or your spouses parents.

[Naomi]

The problem is that for the people who reached retirement a few years back many did not have adequate income to provide them with enough monthly SSI income to live on. And, medicare cost them $88.oo/month and does not pay for all medical. Therefore, unless you have a BIG liquid savings you need a secondary provider. Average cost is between $250-325/month.

My daughter who is a Patient Avocate for the State tells me that most people in their 80ties have less than $500/month SSI. That doesn't go far. Anyone who is approaching retirement in the next 5 years will probably not have adequate SSI income unless they have worked until age 70 ... and had high earnings. However, without savings they still won't have enough for more than just substaining themselves.

However, if a person earns over, I think it's $900/month they are not eligible for other assistence; medical, cost of perscriptions, in-home care if needed, nursing/assisted living, etc.

My problem, and I doubt that I am alone, is that I worked too much, maintained a decent income, and now just my monthly SSI will not make me eligible for any other assistence. Yet, it certainly is not enough to live on.

I think old age in the US would be easier for someone who contributed very little, blew all their money, and acquired nothing! Their future is set, they will be cared for and have the necessities of life.

As for nursing home and assisted living, if you own property the government will take it along with yout SSI.

If a person wishes to leave it in an estate it must be transferred over to the children 5 years prior to needing assistence. Do any of us know for sure that we will be healthy, functioning independently, etc in 5 years? So when does someone transfer their personal property, saving accounts, mineral rights, automobiles, etc.????

[Neil D]

Quote:

It is called Social Security and Medicare.

I currently work in the home care field...And medicare is so confusing that even those of us who work in it are confused.

You would think that the goverment would work for and/or with the elderly to protect what they have. Instead, medicare is so confusingly unknowable, and when it comes to the health insurance, you have to divine the future a bit so as to know what type of health insurance you need for the next one-two years. And this program is established so the goverment can save money on drugs, when all it does it take the money from the elderly by denying them adequate health care. They have to come up with any expenses that it doesn't cover. And each program can change thier minds on the rules as to which drugs they cover and how much at the drop of a hat. Result, the goverment doesn't pay out as much....

It's a shame....All the result of special interests under the republican watch...

[SandyColorado]

This whole thing of getting older and trying to provide for yourself is a BIG mess - and it is only going to get worse. I think that us babyboomers have a real shock ahead of us when we find out how life really is going to be when we (if we) are able to retire.

[Naomi]

Quote:

if we) are able to retire.

It is a given that the cost of living will increase, and probably the age to draw full SSI benefits will increase, Dr's, hospitals and the DRUG (the legal but real hustlers) companies will increase cost, the laws will stay messd up, etc we will have to work until 80 to draw enough to live any kind of existence.

Getting ond is not for the weak or faint of heart

Even so come, Lord Jesus

[Gail]

I've decided that I never want to get old!

[Nan]

I've decided that I never want to get old!

Have to agree with that Gail. Having just visited my mother in her retirement hostel - where she is well taken care of, and she has adequate financial resources (government pension and the church 'sustentation' as my father worked for 48 years for the denomination) - and seen the picture of increasing dependency both physical and mental..... I echo some one else's call, Even so, come Lord Jesus.

(And recognise that we all have to prepare as if His coming was beyond our own lifetimes.)

[Amelia]

Quote:

My daughter who is a Patient Avocate for the State tells me that most people in their 80ties have less than $500/month SSI. That doesn't go far

This is true. My poppy is 82 and gets around 350. He also has a small pension and some CD's. Though last I heard he was now drawing on the last CD. And even though he and his wife (76) are both retired they have rental houses and other odd things that bring in a few dollars.

The two companies I work for have several people who are I call the working retired. A few are even in their 80's.

I dont delude myself thinking I will actually be able to retire and not work. I will be working for the rest of my life

[gina i]

Reading all of this makes me so sad. I don't want to get old (I'm only 27!)

My grandma is finally retiring at the end of this year & she's 70. She should have retired years ago.

Things are not good for the elderly unless you have lots of money. Sad state we live in. I hope Jesus comes soon.

[CyberGuy]

The problem is that for the people who reached retirement a few years back many did not have adequate income to provide them with enough monthly SSI income to live on. And, medicare cost them $88.oo/month and does not pay for all medical. Therefore, unless you have a BIG liquid savings you need a secondary provider. Average cost is between $250-325/month.

My daughter who is a Patient Avocate for the State tells me that most people in their 80ties have less than $500/month SSI. That doesn't go far. Anyone who is approaching retirement in the next 5 years will probably not have adequate SSI income unless they have worked until age 70 ... and had high earnings. However, without savings they still won't have enough for more than just substaining themselves.

However, if a person earns over, I think it's $900/month they are not eligible for other assistence; medical, cost of perscriptions, in-home care if needed, nursing/assisted living, etc.

My problem, and I doubt that I am alone, is that I worked too much, maintained a decent income, and now just my monthly SSI will not make me eligible for any other assistence. Yet, it certainly is not enough to live on.

I think old age in the US would be easier for someone who contributed very little, blew all their money, and acquired nothing! Their future is set, they will be cared for and have the necessities of life.

As for nursing home and assisted living, if you own property the government will take it along with yout SSI.

If a person wishes to leave it in an estate it must be transferred over to the children 5 years prior to needing assistence. Do any of us know for sure that we will be healthy, functioning independently, etc in 5 years? So when does someone transfer their personal property, saving accounts, mineral rights, automobiles, etc.????

I realize that Social Security does not provide enough to live on by itself.

We just got our social security statements on how much we will get if we retire at 66 and 70. It looks like we both will have to work until 70 years as well to make ends meet.

Most people should not depend on Social security by itself. That is way I have a TSA as well as the job retirement plan. All together we should be ok when we retire. Any one by itself is not enough.

The differnece in income between 66 and 70 years to retire seems to be about 33 percent more if you retire at 70. That is an incentive to retire later. Of course the laws could change. Unless they change the laws the medicare will be bankrupt by 2025 they tell us. So either they have to cut benefits or they will have to rise the retirement age even further. Like 70 and 73 etc.

[CyberGuy]

One has to plan decades ahead for retirement.

I have been putting aside money into a TSA for 25 years now and by the time I retire it will have $150,000 in it. My employor retirement plan should have $300,000. I plan to retire at 70 so I will get $2500 a month social security or so says my SS statement.

I set up my mortage payment so the house will be paid for before I retire. So I will be sitting in a house that is paid for by the time I retire.

I estimate I should be getting $4000 a month in retirement with social security TSA and employor retirement funds.

You see one has to plan decades ahead for retirement. To start thinking about it 10 or so years from retirement is way to late in the game to start thinking about that.

[CyberGuy]

I have read that if the retirement age is put up to 72 and extended retirement age for full benefits at 75 then the social security system will be stable. The lifespan has increased by that much. The theory is to put the retirement age up so we will not draw from it so long. My grandfather retired at 65 and lived till 98. He drew more from social security that he put into it. Way more.

[Naomi]

That is true in some cases. In others the people draw very little of what they have paid in. From what I have read, the SSI moneys have also been used for other purposes.

I know a lot of people in their early to mid 70ties and quite frankly, most are not capable to work a full-time job.

[CyberGuy]

That is true in some cases. In others the people draw very little of what they have paid in. From what I have read, the SSI moneys have also been used for other purposes.

I know a lot of people in their early to mid 70ties and quite frankly, most are not capable to work a full-time job.

I agree. My dad is 73 and is working half time and he finds that tiring. He worked full time for a few months to fill in a vacancy when a person retired and left. He found that very exhuasting. If extending the years when you can get social security to 70 and 75 will not work then the only other solution is to cut back the benefits which will only make the situation worse.

Then there is the cases of those men and women who do manual labor like Construction. There is no way they can continue to work until they are 70 or 75. They will be hard pressed to work until 65 to 67. Granted there is no easy solution. Only long term planning is a solution.

Pay off the house mortgage before you retire is one option. If you can offord to buy a house that is. Buy your retirement vehicle and pay it off before you retire. Then you will have a nice car until you are 80 or so if you do not use it much for long trips it should last a while. These are the little things one can do to plan for retirement in advance.

[Naomi]

I hate to sound negative, but even if your home and auto are paid for, there are still taxes, insurance, medical, utilities, groceries and a few misc things to consider.

As I see it; problem is cost of living, taxes, insurance have risen more rapidly than even the retirees planned. And, the medical care and perscriptions are out of signt!

If a person has a job with a good solid retirement plan that, combined with SSI and a nice big savings account they can substain themselves.

Many companies bankrupt one company and start the same company under a different name to avoid the expense of retirement payouts. Then downsize just before the person can take advantage of much retirement.

Many ways round that old table.

[CyberGuy]

I hate to sound negative, but even if your home and auto are paid for, there are still taxes, insurance, medical, utilities, groceries and a few misc things to consider.

As I see it; problem is cost of living, taxes, insurance have risen more rapidly than even the retirees planned. And, the medical care and perscriptions are out of signt!

If a person has a job with a good solid retirement plan that, combined with SSI and a nice big savings account they can substain themselves.

Many companies bankrupt one company and start the same company under a different name to avoid the expense of retirement payouts. Then downsize just before the person can take advantage of much retirement.

Many ways round that old table.

Yes that is true but that would cut out a large portion of the monthly bill. Taxes are paid twice a year and for my area is about $1600 per year payable in two payments which is tolerable.

My point is the mortgage and car payments equal more than half of a families budget. If those are paid for that will leave more for those other items on your list.

Yes I am aware that companies are dishonest and use those tactics to bankrupt the retirement fund. The feds are cracking down on that tactic though because it is becoming to common. Which is why a TSA is wise. That way you own the TSA and it will be there when you retire. As I said it is wise to try to start a TSA as soon as you start work. That way after 40 to 45 years of work you will have a sizable amount there to live on. That coupled with Social security IF your house and car a paid for will make life comfortable.

One more thing. If the house is paid for one can always sell it or get another mortgage on it and live on that for the last few years of your life. I hope to sell the house and live on that money in a retirement center the last decade or so of my life.

Having the house paid for by the time you retire would make things easier for a retiree if one can arrange it. I found the payment difference between a 15 year and a 30 year mortgage was only $250 a month more. Well worth paying the extra money if I do not have to pay for it later on.