How to Avoid Poverty for Single Women Retirees

If you are a single women approaching retirement, you are at much higher risk of living in poverty as you age.  Approximately one out of three Baby Boomer women is either divorced or never married.  While they may have managed just fine on their salaries during their working years, the sad truth is that single women over the age of 65 who were never married, or who are divorced or widowed are three times more likely to be living in poverty. 

The statistics are even more dire for minority single women than they are for Caucasian women, although a significant number of single women of all races are impacted.

Poverty Rates for Retired Single Women Over Age 65

Caucasians - 1 out of 6
African-Americans - 1 in 3
Hispanics - 1 in 2

Reasons for High Rate of Poverty for Single Women Retirees

There are a variety of circumstances that contribute to the high poverty rates for single women over the age of 65.

*  Women who live with a spouse benefit from his Social Security benefits and pensions while he is alive.  In addition, they are eligible to receive their own payment that equals about one-half of their husband's Social Security, depending on the wife's age when she begins to collect.  If she becomes widowed, her Social Security benefits will usually be increased to close to what her husband was receiving before he died.  She may also have access to the proceeds of private pensions and investments.  Single women do not have the benefit of receiving as much income from a spouse.  Even if they are divorced and were married over ten years, at most they can only collect half of what their former spouse received in benefits, with no increase if he dies before her.

*  In general, women earn less than men, so the amount they have paid into Social Security and the amount they will collect based on their own earnings is often substantially less.  They are more likely to be in either lower paying or part-time jobs.  If they are unmarried at the time of retirement, their benefits are likely to be much lower than the benefits men receive.

*  Women often spend less time in the workforce because they are frequently expected to drop out periodically to act as caregivers ... either for their children, their parents or other members of their family.  On average, women caregivers take 12 years out of the workforce, which dramatically reduces their lifetime earnings and Social Security benefits.  This can have a devastating effect on retired women, since half of elderly women depend on Social Security as their only source of income.

*  In addition to qualifying for lower Social Security benefits, women also tend to have much less money saved in private retirement accounts and pensions.

*  Women tend to live about 3 to 4 years longer than men, on average, which means their meager savings must last longer.

*  The average man over 65 receives $27,657 a year in income from a combination of Social Security, pensions, dividends and other income; the average women over 65 receives only about $15,323 a year from all income sources.

*  Marriage rates continue to decline, which means the issue of poverty in retirement for single women is likely to continue for generations.  In fact, it is estimated that 25% of young adults will never marry.  When this is added to the number of women who will be divorced or widowed, many young women are likely to face the same situation as the women in the Baby Boomer generation.

Proposed Government Solutions to Reduce Poverty for Single Women Retirees

Currently, no one has come up with a solution to the issue of how to help single, elderly women retirees.  Here are some of the ideas that are being tossed around:

*  Expand Social Security benefits for people over the age of 80 or 85 ... an age group that is primarily female.

*  Change the way Social Security benefits are calculated so that women get credit for those periods of time when they are working as full-time, unpaid caregivers for their children, parents or other family members.

*  Giving everyone either a flat minimum payment or a means-tested minimum benefit, regardless of their marital status or how much they have earned during their working years.

What Women Can Do to Lower Their Own Poverty after Retirement

Many women who are struggling to make ends meet month after month may not be able to do very much to improve their situation.  However, until the government makes changes, there are a few things women should try to do, if possible:

*  Work full-time rather than part-time, for as many years as possible, to increase the amount of Social Security benefits they will receive in the future.

*  Look for jobs with the government or employers who provide a private pension or match contributions to a 401(k).

*  Contribute to an IRA or other pension plan.

*  Delay retirement until age 70 in order to maximize their Social Security benefits.

Other Help for Low Income Retirees

In addition, there are programs available to help low income retirees.  You may be interested in reading my article on this topic:

"Public Assistance for Low Income Retirees"

Source:

"The Next Social Security Crisis: Why American Women are Bearing the Brunt of the Retirement Crunch,"  Time Magazine, August 3, 2015, pg. 48.

If you are interested in more information about financial planning for retirement, where to retire, health issues, family challenges and more, use the tabs or pull down menu at the top of the page to find links to hundreds of additional articles.

Photo credit:  Morguefile.com

Update on the UCI 90+ Study at Laguna Woods Village

During the past few years, I have been following the 90+ Study in which researchers from the University of California in Irvine have studied people who live to age 90 or older.  They refer to them as the Oldest of the Old.

The UCI findings have been fascinating.  The study has been conducted on residents of the retirement community where I live who are over the age of 90.  However, when the project first started, these people were in their 60s.  As a result, the researchers have learned a great deal about this group of people.

Recently, I once again attended a speech by Dr. Claudia Kawas of UCI in which she discussed her major findings.  She and her team of researchers have learned a number of things about the lifestyle choices and genetic makeup of people who manage to live to be 90 years old.  Below you will find data from their website, 90study.org, which summarizes what they have discovered.

Major Findings from the 90+ Study Listed on Their Website

*  People who drank moderate amounts of alcohol and coffee lived longer than those who abstained.  However, as you will see later in this article, living a long life is not the same as having a clear mind and a good quality of life.

*  People who were overweight in their 70s lived longer than normal or underweight people did.  Again, a long life does not mean you will avoid dementia or disability.

*  Over 40% of people who live until they are between 90 and 100 years old will suffer from dementia; almost 80% of the people in this age group are physically disabled.  Both conditions are more common in elderly women than men.

*  About half the people over the age of 90 who have dementia do not have sufficient neuropathology in their brain to explain their cognitive loss.  This means that some people develop dementia, even when an autopsy does not show that there was anything seriously wrong with their brain.

*  People aged 90 and older with an APOE2 gene are less likely to have clinical Alzheimer's dementia, but are much more likely to have Alzheimer's neuropathology in their brains.  In other words, an autopsy may show that their brains have damage that would normally indicate Alzheimer's, but there were no clinical symptoms of the disease while they were alive.

More Findings from the 90+ Study about Dementia

In addition to the items listed above, Dr. Kawas reported a few additional facts about dementia during her recent presentation at Laguna Woods Village.

*  At age 75, there is about a 5% risk of dementia. At age 80, senior citizens have about a 10% risk.  The risk currently doubles approximately every five years.  At age 85, the rate is 20%.  At age 90 and older it is 40%. 

*  While moderate alcohol and caffeine consumption may help you live longer, it does not appear to prevent dementia.  Taking Vitamins E and C did not appear to help, either.  However, physical exercise does seem to "increase the production of a key brain nutrient called brain-derived neurotrophic factor."  Exercise is the only lifestyle choice Dr. Kawas mentions in her website that definitely seems to make a difference in brain function later in life.

increases the production of a key brain nutrient called brain-derived neurotrophic factor - See more at: http://www.mind.uci.edu/research/cutting-edge-alzheimers-research/diet-and-exercise/#sthash.O3ebpG0v.dpuf

increases the production of a key brain nutrient called brain-derived neurotrophic factor - See more at: http://www.mind.uci.edu/research/cutting-edge-alzheimers-research/diet-and-exercise/#sthash.O3ebpG0v.dpuf

increases the production of a key brain nutrient called brain-derived neurotrophic factor - See more at: http://www.mind.uci.edu/research/cutting-edge-alzheimers-research/diet-and-exercise/#sthash.O3ebpG0v.dpuf

*  While many people assume that Alzheimer's Disease is the only cause of dementia, there are actually over 100 different pathologies or symptoms of diseases which appear to cause dementia.  For example, irreversible dementia can also be caused by vascular problems, a stroke, brain injury, sleep apnea, Parkinson's disease and Huntington's disease.  As reported above, people can have the Alzheimer's neuropathology in their brain and NOT develop dementia.  If they have the Alzheimer's neuropathology and one additional dementia pathology, they are much more likely to develop dementia symptoms.  If they have the Alzheimer's neuropathology and two additional dementia pathologies (or symptoms of brain diseases), they almost always have dementia symptoms that can be observed while they are alive.

*  On the other hand, approximately 40% of people with dementia have none of the pathologies or disease symptoms which are known to cause dementia.  In these people, the cause of their dementia is unknown!

*  Alzheimer's is the most common form of dementia (defined as a decline in memory and cognitive abilities severe enough to interfere with everyday functioning).  Alzheimer's accounts for 70% of cases of dementia.

*  Alzheimer's is the 6th leading cause of death in the United States, often because the patient becomes bedridden and develops pneumonia.

*  One out of nine people age 65 or older and one out of three people age 85 or older are living with Alzheimer's Disease. 

*  Age appears to be the greatest risk for dementia.  No matter what you do, the longer you live, the greater your risk of becoming mentally impaired.
 

How to Learn More About the 90+ Study from UCI

Many of us are going to want to continue to follow the 90+ Study and readers can watch for future reports in this blog about the findings in the coming years.  Here are a few other ways you can learn more and, in some cases, help.

*  You can sign up to participate in a trial at:  TrialMatch.alz.org

*  You can follow the UCI 90+ study and, if you wish, make a donation at:  90study.org

*   You can read more on the background and findings of the UCI study in my article:  The UCI 90+ Study at Laguna Woods Village. 

If you are looking for more information that will benefit you as you age, use the tabs or pull down menu at the top of this page to find links to hundreds of additional articles on medical issues, where to retire, financial planning, family relationships and more.


You are reading from the blog:  http://www.baby-boomer-retirement.com

Photo credit:  Photo of Laguna Woods Village taken by author, Deborah-Diane.

People who drank moderate amounts of alcohol or coffee lived longer than those who abstained.

People who were overweight in their 70s lived longer than normal or underweight people did.

Over 40% of people aged 90 and older suffer from dementia while almost 80% are disabled. Both are more common in women than men.

About half of people with dementia over age 90 do not have sufficient neuropathology in their brain to explain their cognitive loss.

People aged 90 and older with an APOE2 gene are less likely to have clinical Alzheimer’s dementia, but are much more likely to have Alzheimer’s neuropathology in their brains.

- See more at: http://www.mind.uci.edu/research/90plus-study/#sthash.Ynp7gWGK.dpuf

People who drank moderate amounts of alcohol or coffee lived longer than those who abstained.

People who were overweight in their 70s lived longer than normal or underweight people did.

Over 40% of people aged 90 and older suffer from dementia while almost 80% are disabled. Both are more common in women than men.

About half of people with dementia over age 90 do not have sufficient neuropathology in their brain to explain their cognitive loss.

People aged 90 and older with an APOE2 gene are less likely to have clinical Alzheimer’s dementia, but are much more likely to have Alzheimer’s neuropathology in their brains.

- See more at: http://www.mind.uci.edu/research/90plus-study/#sthash.Ynp7gWGK.dpuf

People who drank moderate amounts of alcohol or coffee lived longer than those who abstained.

People who were overweight in their 70s lived longer than normal or underweight people did.

Over 40% of people aged 90 and older suffer from dementia while almost 80% are disabled. Both are more common in women than men.

About half of people with dementia over age 90 do not have sufficient neuropathology in their brain to explain their cognitive loss.

People aged 90 and older with an APOE2 gene are less likely to have clinical Alzheimer’s dementia, but are much more likely to have Alzheimer’s neuropathology in their brains.

- See more at: http://www.mind.uci.edu/research/90plus-study/#sthash.Ynp7gWGK.dpuf

How Americans are Aging and Changing

The Baby Boomer generation is getting older and lifespans in general are increasing.  As a result  the United States is aging rapidly.  Recently, I attended "The State of Aging in Orange County," a seminar put on by the Office on Aging and other agencies in Orange County, California.  The speakers were outstanding and over the next few weeks this blog will contain posts on some of the information that was covered during the seminar.

In particular, most Baby Boomers will be interested in some of the general facts that were brought up by the speakers.

Redefining What it Means to be Old

Karen Roper, who is Director of OC Community Services and oversees the Office on Aging, the Veterans Service Bureau and several other agencies, said they are working to redefine what it means to be old.  Rather than basing it on someone's age, they want to define it based on a person's functional ability.  After all, she pointed out, some people can be in their 80's or 90's and still be able to live on their own and take care of their shopping, housework, cooking, etc.  On the other hand, a person who is in their 50's or 60's might be suffering from a number of medical conditions, including early onset dementia, which might make it difficult for them function independently at all.  Which person should be considered "old?"

The U.S. Population is Aging Rapidly

Michael Schrader, the Chief Executive Officer of CalOptima, presented fascinating statistics regarding how quickly the American population is aging.  In 2015, there are approximately 40 million people over the age of 65.  Over the next ten years, by 2025, the population of people over the age of 65 will increase by 50% to 60 million.

Social Security and Medicare Will Need to be Reformed

Mr. Schrader revealed that over that same ten year period, Social Security costs are expected to increase by 77% and Medicare costs by 89%.  This is unsustainable without some types of reforms. As was recently mentioned in this blog, one change has already been made in order to save the government money in Social Security expenditures. It was part of the 2015 budget agreement.  The SSA has now eliminated an option couples used to have for maximizing their benefits ... the file and suspend option. 

Among other changes that are being considered are:

* Raise the minimum ages to receive both Social Security and Medicare benefits
* Increase the co-pays and other forms of cost sharing for Medicare beneficiaries
* Change to a need based voucher system for Medicare benefits

New Approaches to Administering Medicare and Medicaid

CalOptima is also experimenting with a new system to make Medicare benefits more efficient, cost effective and easier to use for beneficiaries who qualify for both Medicare and Medicaid (known as Medi-Cal in California).  Many of the people who qualify for both have to deal with four different programs ... Medicare Part A, Medicare part B, Medicare part D, and Medicaid.  Since these people frequently have dementia or other health issues, dealing with all these different  programs is overwhelming.  CalOptima is experimenting with combining all four of those programs into one, adding on dental and vision services, and providing case carriers to assist the recipients.  They believe that reducing the fragmentation will make the program operate more efficiently and less expensively.  In addition, beneficiaries will only have one phone number to call and one person to deal with, which should make things more manageable.

If the CalOptima program works here in Orange County, it will be spread to other parts of the United States.

In the coming weeks, this blog will contain additional information that was provided during the State of Aging seminar ... interspersed with other topics of interest to Baby Boomers.

If you are looking for additional information on retirement planning, coping with health issues, finding good places to retire, changing family relationships or more, use the tabs or pull down menu at the top of this article to find links to hundreds of additional helpful articles on a variety of subjects.

You are reading from the blog:  http://www.baby-boomer-retirement.com

Photo credit: Morguefile.com