Posts Tagged "women"
November 8, 2018
A Proposal to Reduce Widows’ Poverty
A dramatic decline in widow’s poverty over a quarter century has been a positive outcome of more women going to college and moving into the labor force.
A new study by the Center for Retirement Research takes a fresh look at Social Security’s widow benefits and finds that increasing them “could be a well-targeted way” to further reduce poverty.
Widows are vulnerable to being poor for several reasons. The main reason is that the income coming into a household declines when the husband dies. The number of Social Security checks drops from two to one, and any employer pension the husband received is reduced, or even eliminated if the couple didn’t opt for the pension’s joint-and-survivor annuity.
While one person can live more cheaply than two, the drop in income for new widows often isn’t accompanied by a commensurate drop in expenses.
Another issue begins to develop as much as 10 years before a husband dies. Prior to his death, his declining health may increase the couple’s medical expenses and reduce his ability to work, depleting the couple’s – and ultimately the widow’s – resources.
The irony today for wives who worked is that their decades in the labor force generally improve their financial prospects when they become widowed. Yet, under Social Security’s longstanding design, they receive less generous benefits than housewives – relative to the household’s benefits prior to the husband’s death. …Learn More
September 20, 2018
US Fertility Falls in Midst of Recovery
When the economy is expanding and more people are working and earning more, they can afford to have more babies.
But that time-tested connection between the economy and fertility seems to be broken. During the recovery that followed the 2008-2009 recession and continues today, the U.S. fertility rate has dropped quite a bit.
Lower fertility is of interest to retirement experts because it has serious implications for our aging population. AARP’s Public Policy Institute predicts a decline in the number of family members and friends available in the future to care for the elderly. Fewer babies also mean fewer workers will be paying into Social Security, in the absence of an increase in immigration.
Of course, fertility rates in developed countries like the United States, Germany, and Japan are far below the post-World War II baby boom. But the very recent decline in this country is striking. The total fertility rate, the best measure of current fertility, is 1.76 births per woman. This is well below the rate of 2 births per woman a decade ago.
September 6, 2018
Personal Finance Videos for Young Adults
PBS Digital Studios is producing an excellent video series to guide 20-somethings who are starting their careers and want to get a handle on their finances.
In “Two Cents,” financial planners Julia Lorenz-Olson and her husband, Philip Olson, will make you laugh as they convey their very solid advice about personal finance. “How to Ask for a Raise” is perhaps the most relevant video to young adults – especially the ladies. Only one in three women believe that their pay is negotiable. Nearly half of all men do.
The potential for pay raises is highest for employees when they are in their late 20s and early 30s. But the boss isn’t likely to volunteer to increase anyone’s pay, the hosts explain – you have to ask. This is a scary thing to do, and the couple eliminates some of the anxiety by explaining how to prepare for that meeting with the boss.
The “Love and Money” episode asks the questions that are crucial to a successful partnership: how much does he or she earn and how much does this person owe? In “How Cars Can Keep You Poor,” the Olsons advise against buying a new car, which depreciates 63 percent in just five years – they compare it to investing in an ice cream cone on a hot day. A used car is a much better deal and the only sensible option for someone who’s already juggling rent and student loan payments. And the answer to “Should I Buy Bitcoin?” is, uh, no. Nearly half of all bitcoin transactions are illegal, Olson says.
For future-minded young adults, “How Do You Actually Buy a House?” walks through the entire process, explaining why it’s critical to get preapproved for a mortgage, how to choose a realtor, and what to expect in the closing. “Insta-Everything lays out the few pros and many cons of paying for on-demand services such as Grub Hub, InstaCart, and Task Rabbit.
December 5, 2017
Changes in Marriage Increase Class Divide
In the 1960s, half of all wives were housewives, and their husbands often earned enough money to support a family. Today, these traditional families are a rarity and two incomes have become essential to surviving economically.
A new joint report by the American Enterprise Institute and the Brookings Institution argues that poor and working-class families’ increasingly fragile family structure – despite the rise of dual-income spouses – often leaves them “doubly disadvantaged.” And lower marriage rates among poor and low-income couples help to explain why “America is increasingly divided by class,” write the authors, W. Bradford Wilcox, a professor and director of the National Marriage Project at the University of Virginia, and Wendy Wang, research director for the Institute for Family Studies.
They explain that higher rates of divorce and of couples cohabiting affected the poor’s marriage rate first and most harshly in the 1960s; working-class couples were next, though to a lesser extent in the 1980s. Marriage is far more common among the middle and upper classes.
The authors cite several economic and social forces behind these trends. The losses that less-educated, lower-income men “have experienced since the 1970s in job stability and real income have rendered them less ‘marriageable.’ ” Stagnant or declining wages for middle- and working class couples impede their ability to afford a home, which is the most valuable financial asset most households own. Couples lacking property may “have fewer reasons to avoid divorce.” …
October 25, 2012
A Dozen Things Women Need to Know
While Squared Away’s goal is to increase everyone’s understanding of how their behavior affects their financial security, substantial attention has been paid to women.
Since going live in May 2011, this blog has posted numerous articles on women’s unique – and often more challenging – financial concerns. Women earn less, live longer, save less for retirement, and are more likely than men to take on the financial burdens associated with caring for children or elderly parents.
Click on “Learn More” for links to a dozen recent articles, from the concerns of young career women to widows. They include “He’s a Rabid Saver; She’s a Spender,” and “Boomer Moms: Take Care of Yourself For Once,” and “You Are Not Alone…”
August 9, 2012
Social Security Advice That Harms Wives
Social Security rules generally make it more beneficial for the higher-earning spouse – usually the husband – to delay signing up for his benefits well past age 62. By delaying, he boosts the size of his monthly Social Security check, automatically increasing his wife’s “survivor benefit” after he dies. This holds true for most couples, whether the wife works or not.
A new survey of U.S. financial advisers provided them with hypothetical couples’ situations and asked how they would advise them on when to start receiving Social Security. For the couple in excellent or average health, only 20 percent recommended “that the man delay claiming as long as possible.” This advice leaves most widows with a substantially smaller monthly benefit for years or even decades.
The survey’s finding demonstrates “the lack of understanding of both the benefits of delaying and the compounding factor it can have on the spouse,” said Lisa Schneider, research director for Greenwald & Associates, a private research firm that conducted the study with researchers at the University of Pennsylvania. …Learn More
January 10, 2012
Married Women Gain on Singles
For decades, single women earned much more than married women over their working lives. But new research on historical wage trends finds that the earnings gap is finally closing.
Wages for married women without a college degree have increased faster over the past 50 years than wages for their single coworkers without degrees, making them nearly identical. While single women with a college degree still earn more than married women with a degree, the gap has also closed dramatically: Single women earned $1.12 for every dollar earned by married women in 2006, compared with $1.30 for single women who entered the workforce in the early 1960s.
Married women “have caught up tremendously,” said Chinhui Juhn, labor economist at the University of Houston, who conducted the research with Kristin McCue at the US Census Bureau for the National Bureau of Economic Research. …Learn More