Today’s women baby boomers are doing poorly in comparison with women of the same age in the 1990s. The question is, Why? One reason is that they have more debt. Bigger, more expensive houses bought with smaller down payments mean larger mortgages. Also they are more financially illiterate, with no plan for retirement, more service fees and more spent on late fees and interest. Because of the financial instability of these women, they are working longer in life. Working longer gives the women money to pay their bills in the short term and defers receiving Social Security benefits. This increases the benefits about 8% for every year of delay. If a woman delays retirement from the age of 62 to the age of 70, she increases her Social Security benefits by 75%. This is the best recourse for many of these women.
- 1Our study also shows that less financially literate women are unlikely to plan for retirement, rendering them financially fragile.
- 2One reaction to this larger debt has been that many Boomer women are remaining employed to pay their bills.
- 3This makes it easier to work at older ages, with 20% more Boomer women planning to still hold a job at age 65 compared to the past.
Our study also shows that less financially literate women are unlikely to plan for retirement, rendering them financially fragile.