Retirement Security: Single Women See Gains, Married Women Face Declines

Recent research reveals a significant shift in retirement security dynamics, highlighting both progress and challenges for women. According to a study from the Center for Retirement Research at Boston College, single women are now nearly on par with their married counterparts when it comes to retirement readiness. This change is attributed to both historical progress for women and recent declines in financial stability among married couples.

Over the past 50 years, women have made remarkable strides in the workforce, achieving higher wages and educational levels. Title IX of the Education Amendments of 1972 played a pivotal role in this progress by enhancing gender equity in education, leading to more women entering college and high-paying professions. For instance, 33% of baby boomer women born in the early 1960s hold a college degree, a significant increase from 15% among women born in the 1930s.

However, the financial landscape for married women has not improved equally. The Great Recession had a pronounced impact on the retirement security of married couples, particularly due to the economic struggles faced by many men during this period. Research indicates that the average wealth held by households led by married women has decreased by 23%, from $579,000 to $446,000, while single women’s wealth has increased by 28%, from $227,000 to $290,000.

This trend is also reflected in retirement income replacement rates. For baby boomer women born after the mid-1950s who have spent most of their adult lives married, the replacement rate has dropped to 35% from 44% for those born in the 1930s. In contrast, single women in the same age group have a rate of 33%.

Despite these gains, many women remain concerned about their retirement security. A study from the Transamerica Center for Retirement Studies found that only 20% of women feel “very confident” about their retirement prospects. Many women continue to face challenges such as debt, insufficient income, and a gender wage gap, which averaged 82% of men’s earnings in 2022.

The future of retirement security for women, especially single women, remains uncertain. Laura Quinby of Boston College suggests that without significant structural changes, the progress made may not continue at the same pace. The evolving landscape underscores the need for continued attention to retirement planning and financial security for all women.

Sushmita Chowdhary, Staff Reporter.