After gray divorce, women’s standard of living fell by 45 percent, Dr. Lin and her co-author found, while men’s decreased by just 21 percent. Divorced older women can regain their financial footing by remarriage and cohabitation. However, only 22 percent of women have remarried, compared to 37 percent of men. (In Ms. Palazzo’s case: “Not going to happen.”)
Some of this inequity may be reduced by changes to Social Security eligibility and benefits. The spouse who has been divorced receives half the benefit as a widowed spouse. Partially compensating for years spent in elder care or child rearing could be done by Caregiver Credits.
“The basic rules were written in the 1930s,” Dr. Rutledge said. “They don’t recognize women’s increased employment. They don’t recognize that people don’t stay married for good.” Mandated retirement savings programs (Australia has one) would also help workers whose employers don’t offer them.
It’s possible to see progress in these patterns. “It’s good news that women are working and living independently, emerging as independent economic actors,” said Teresa Ghilarducci, an economist at The New School, noting that younger women were narrowing the gender gap in earnings and savings.
But many women currently approaching retirement may struggle, especially if they’re single like Ms. Hartt. She lives on $2,500 per month of Social Security benefits. She has a 2001 Nissan that leaks and she will not be able to replace it when it dies. “Because I have no family and no savings, what worries me is if I were to become disabled, physically or mentally,” she said.
One piece of luck: In September 2020 she moved into a bright apartment in a New Haven Section 8 subsidized housing community for seniors and people with disabilities. The rent is $670 per month, which includes utilities.
“I feel safe,” she said. “I’m at a kind of peace.” And because she hasn’t fully squelched her optimism, she buys a few lottery tickets each week.
Source: NY Times
