BOSTON (CBS) – The Bag Lady Syndrome really does exist. For many women their biggest fear is that they will be penniless and homeless in their old age and unable to afford food, shelter, and medical care.
A study done last year by Allianz Life (Women, Money & Power Study) found that almost 50% of women, no matter what their income levels, are have this same fear.
Several years ago, I proclaimed the first week of October “National Bag Lady Week”. I thought we should draw attention to this matter. Congress has not caught on yet!
The average woman (age 65) lives six years longer than the average man. As a result, she is typically widowed and living alone.
She struggles to make ends meet on an average annual income of about $16,000 compared with over $29,000 for men. According to the Census Bureau, nearly one-in-five women who are living alone live in poverty.
During her lifetime the average woman will spend 17 years raising her children and 18 years caring for elderly parents and possibly her spouse. Her retirement income is also smaller because she probably did not receive a pension and was paid less over her lifetime than the average man.
Less than 1/3 of women will receive a pension as compared to 55% of men. Women are more likely to work part-time so often they are not eligible for a pension.
Most women receive lower Social Security benefits. They are the face of Social Security, comprising almost 60% of beneficiaries over age 62 and 70% of recipients over age 85.
For one third of the unmarried elderly women Social Security is their sole source of retirement income. The average monthly Social Security check for a woman is $1,100 ($1,092). That’s about $350 a month less than that of the average man and over 20 years amounts to $84,000.
The numbers only get scarier! Seven out of ten “baby boomer” women are expected to outlive their husbands/partners. Many will be widows for 15 to 20 years.
Money Conference Alert!!
On October 11th I will be the key note speaker at The Money Conference which is a FREE one-day event presented by The Office of Massachusetts State Treasury. It will be held at UMASS Boston and the first 500 registrants will get a free copy of my newest book, Money, Your Personal Finance Guide.
There will be afternoon classes on everything from budgeting to buying a house. The Financial Planning Association of Boston will have volunteer financial planners there to help answer questions. You can set up a meeting with a Money Mentor when you register. If you have questions about the conference, contact Sheila O’Loughlin of the State Treasury at (617) 367-6900 ext 615.