My mother stayed at home while we were
growing up. We lived in the country and while my dad was in town 15 miles away,
my mom made meals, cleaned the house and ran a family of six kids. She was
active in clubs, pursued her interests, and helped my dad at his office once we
were all in school. Then, at 60, she went back to work – although of course she
had been working all along.
We, as women, are certain of one thing: Our
work is never done – whether that means taking care of our families and households,
safeguarding our income, starting or resuming careers, and serving our communities.
Yet there is much we can’t be certain of. We hope that we might wake up to less
responsibility, or that others will come forward. But as we look around,
especially to women just older than ourselves, we see the signs of working
in retirement.
What is a poor woman to do? Well, the
research is either old, from the 1990s, or disheartening. The National Council
on Aging released its “Senior Debt Facts” in 2015. We are retiring with a load
of red ink. At the same time, housing and medical care costs are skyrocketing.
This is not intended to be a message of despair, but of the need for resilience.
Realizing we are all at risk for
significant financial change is a key step.
Just like the overnight success that took
20 years, a woman wakes up to an economic fallout of aging. We suspected that
men entered retirement differently, but there are so many other differences. How
we look at ourselves and what steps make sense, including the return to work
shapes the transition to retirement.
First, our collective shift toward reduced
income should not come as a surprise. We aren’t retiring like our parents. For
those approaching retirement, born in 1955 or earlier, we know our expenses are
the same or will increase and that our income is capped at best. That rub,
where expenses change but income doesn’t, may mean that someone in the
household continues to work longer than expected. Or, like my mom, returns
after a 25-year break.
That’s right, you don’t work, and life
just got more expensive. Not immediately but slowly and surely. Society might
imagine that someone will take care of you. In fact, you’ll most likely outlive
your male spouse and use your physical energy and financial resources for him. If
you’re not in a traditional relationship, or not in a relationship at all, you may
also need to plan to be the CEO and workforce of your household.
But let’s back up. As women, what we don’t
know is how our retirement might play out.
Women in retirement
Let’s get some figures down on paper. The
median household in Long Beach is about $55,000.
If you are a woman who has been working
most of her adult life, here are some considerations as you grow older in Long
Beach. The average salary for men is $68,721. For women, it is $54,710. Not
only do we make less, but fewer dollars are reserved for Social Security or
other post-work pension funds. Double whammy. But it is worse than that. Many
women who were born in the mid-1950s had intermittent work histories (by choice
or otherwise) that limited salary growth, affected continuation of vested
savings funds and resulted in patchy skills for their résumé.
Just think of a single senior getting
$14,400 a year in Social Security and taking care of a couple of grandchildren
or a relative who needs care. Clearly, the federal government hasn’t looked at
the “for rent” signs lately. A one-bedroom for $1,200 is a steal. Taking out
that pencil and licking the lead, a household living on Social Security and other
modest sources of income is a recipe for homelessness.
When it’s more than dollars and sense
Unshackled by work? The myth of a carefree
retirement is so last century! You may be feeling a little lost and unsure. How
we are feeling is in large part based on our attitude. A positive attitude is more than just having
enough money. Attitude adjustment improves when you find reward in other parts to
your life. And the research supports this. Studies suggest that having adequate
funds is important, but other factors such as “having to retire” or the state
of being in poor health make for a difficult retirement. Having a change in
your marital relationship is also a precursor to poorer well-being.
Major upheavals can occur any time in
life, but there may big changes just about the time you transition to
retirement. Predictably there may be the need to move or adapt to a change in
the household such as a grandchild going to college or an adult child moving
out of the area for work. So, there is little to support the carefree retirement
myth. Rather we need to bolster our readiness, have options and, of course,
some financial flexibility. Money isn’t everything, but it helps. You may need
more money whether there is a change in health, or a loss in your life.
A word on demographics
If there is a glaring lack of current research about women working
in retirement, the knowledge gap only multiplies when women of color are considered.
But the wealth gap is documented. According to a National Women’s Law Center
report released this April: Latina, black and Native American women “must
work well into their 80s or 90s in order to catch up to what a white,
non-Hispanic man made by age 60, delaying their retirement even beyond their
life expectancy.”
In 1988 research on aging, results showed African
American women ages 62-65 were considerably more
likely than whites to have worked steadily most of their adult lives, although
black and white women expressed quite similar attitudes toward work. Reflecting
their work histories, black women were more likely than whites to be eligible
for pensions but were less likely to have retired.
Gender matters
Can we look to men for
encouragement? Maybe, but a large analysis done in 2013 by a life insurance
company suggests that men and women have different attitudes about saving money
and different opinions about themselves as money managers. According to this
study of over 1,500 men and women over the age of 25, one in four Americans say
they would like to be more cautious with their money and have a lot of catching
up to do to be where they want financially. Among women, 59 percent feel their
financial planning needs improvement.
For some, there is not so much a
transition to a new future but a new reality. Two scholars, Loe and Johnston
have looked at female baby boomer professionals from a lens that includes relationships
and refers to retirement for this segment of women as a process of “rebalancing.”
Others describe the multiple roles women have during their adult life and how
these get reshaped in later years. The idea of rebalancing intuitively makes
sense.
For me, Ruth Karpen, hits the nail on the head.
In her 2017 article, “Reflections on Women’s Retirement,” she lays out how
boomers may change the idea, or rather bust the myth of retirement. She is
clear that the designation of boomer may apply only to white, well-educated
women – and that there is a world of diversity that has many implications. The
larger lesson may be that retirement is personal, it is about relationships that
make up a very large part of our life.
Caption for Photo – Gretchen Swanson and her mother Gladys
Hooks, taken in 1980’s for a professional magazine article about two
generations of physical therapists.
My experience is sharply different from my
mother in financial status and attitude. As a boomer, I worked my entire adult
life. No breaks for kids. Went out on my own without a salaried job. Moved to
another part of the country, married, divorced, married. I’ve had to anticipate
financial stability while running a small company – no real chance to save. Yet,
looking at others like me, those born about the same time, with similar
education and racial background, remains a good mirror. But I also look to
women of color, recent immigrants, and those with different educational and
cultural backgrounds, for some timely solutions. And maybe that is what we
should do as the book is rewritten for our generation. Look at others, like
yourself. And, look at others. A new and improved sisterhood.
The possibilities
But what to do? We all need to change as
we age. Start figuring out your reality. Work with your resources and peer
group. Maybe it’s your book club or a group at church. Your local library and
community center offer ways to intersect with women from different backgrounds
with common concerns.
Asking questions, you’ll realize that the
nursing career you left a few decades ago might be a lead-in to working part time
at a senior wellness clinic. Or perhaps your management skill set using
industry-grade technology might allow you to work a short shift at an
industrial site. Or you might utilize your late-model car and become an Uber or
Lyft driver. I am impressed every day by the background and experience women of
Long Beach have, offering services that are needed.
So, if work is in the mix, what can you
do? Financially, some retired professionals and managers might have the option
of working part time. However, it can’t be stressed enough that those scenarios
need to be worked out with your tax accountant ahead of time. Worth every penny
of their time. If you have been doing work that is physical, and don’t think it
is wise to continue, then branching out is, well, tricky. Younger, well-trained
and enthusiastic workers are available. So, building your options before you need to go to part-time work
will help.
My mother is a constant reminder. She had
a professional career but quit to raise a family. She had a great time until
she needed to replace income that was lost when my father was no longer able to
work. So, at age 60 she reentered the workforce. She remained employed until 72
– mandatory retirement from her state civil service position. My dad died when
she was 62 and her income became a lifeline, the financial security was
essential. Along the way she met large numbers of people who remained her friends
until the end of her life.
But it was hard. She was alone at
times, she was a “single,” her independent spirit needed time to reassert
itself to begin new parts of her life, bridge club, bible study, attending her
granddaughter’s soccer matches. Eventually, that spark was ignited. When she
was in her 80s and long past her “retirement,” her kids got a call. “Would you
go with me to Russia? St. Petersburg? This coming February?” Sad to say, none
of us kids took the bait. But she went and had a terrific time. I still have
the ushanka (Russian mink
hat).
She never complained. But, she was happy
to enjoy a beer and chips after a week of work and talk about interesting
things. She found a way to make work work.
And that is a woman’s way.
Assisting Gretchen Swanson DPT, MPH with this article isKaren Chaderjian MSW.
Gretchen and Karen both practice Tai Chi at Houghton Park Community Center.
Watch for Join the Dots: Tai Chi On-Demand coming soon on YouTube.
