How Financially Secure Is Your Mother? More Older Women Live in Poverty
If you are like many, you worry about your parents as they grow older. The future may not be so rosy for mom.
The Organisation for Economic Co-operation and Development (OECD) predicts poverty for mothers in their elder years, reports Forbes. The OECD is an international economic organization of 34 countries founded in 1961 to stimulate economic progress and world trade.
In a press release, the organization takes a closer look at the earnings of mothers in many countries, including the United States. The wage gap between men and women, according to the OECD will leave many women unable to take care for themselves after they retire. In the U.S., the wage gap between men and women without children is seven percent. After women have children, the wage gap increases to 23 percent.
Women typically retire on lower pensions, yet live an average of six years longer than men. As a result, says OECD, “[W]omen over 65 are today more than one and a half times more likely to live in poverty than men in the same age bracket.”
According to the latest Census Buerau data, more single mothers are living in poverty– a 31.6 percent poverty rate, or 4.7 million women in 2010. The numbers are more disheartening for elderly women. “Growing numbers of older Americans are spending their retirement years in poverty, according to a recent Employee Benefit Research Institute study. The proportion of older people living below the poverty line has been growing steadily since 2005,” reports U.S. News & World Report. Medical expenses seem to play a large part of increase rate of poverty. And again, women are hit the hardest. “Poverty rates for women were nearly double that of men in almost all years between 2001 and 2009. In 2009, poverty rates were 7 percent for men and 13 percent for women,” writes the magazine.
Are you concerned about your mother’s retirement?