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Money | 06/23/2008 4:35 pm

Divorced, Widowed American Women More Vulnerable to Poverty

By The Staff at wowOwow.com
© Shutterstock

Across the globe, it’s common belief that widows and divorced women face discrimination, and in the United States, poverty rates for those who have left or lost their husbands are far above average and expected to continue to rise, according to two recent studies.

In 12 of 17 nations polled — which included interviews with 17,595 respondents – by WorldPublicOpinion.org, about four in ten perceive there is some or a great deal of discrimination against widows. The same is true for discrimination against divorced women. On average across all 17 nations, just 28 percent say there is no discrimination against widows at all, while 20 percent say there is a little, 27 percent some and 16 percent a great deal. Similarly, for divorced women, an average of 27 percent say there is no discrimination, 21 percent say a little, 28 percent some and 18 percent a great deal.

"Discrimination against widows and divorced women appears to be a phenomenon of many countries, not just some traditional cultures," says Steven Kull, director of WorldPublicOpinion.org. "People in most countries, including developed ones, recognize there is at least some discrimination."

American divorced women don't have the same "safety net" and ... often get less than one-half of the pension and other assets of their former husbands.

And in the United States, the share of elderly women living in poverty is highest among divorced or separated women (37 percent), followed by widowed women (28 percent). These percentages will continue on the upward trek, as the baby boomers age and as more women divorce or separate, according to Timothy Smeeding, director of the Center for Policy Research and distinguished professor of economics and public administration at the Maxwell School at Syracuse University.

American women who divorce are more vulnerable to poverty than their northern and western European counterparts. American divorced women don’t have the same "safety net" under their income and they often get less than one-half of the pension and other assets of their former husbands, according to Smeeding’s research. A divorced woman who either took time off to raise the kids or never entered the labor force could find herself with neither assets nor job skills needed to keep her out of poverty.

Click here to read Two Ways Older Women Can Shield Themselves From Poverty.

 

Read more about: Career, Divorce, Finance

21 Reader Comments (so far…) Sign In or Register to comment

Amber Swaney
Perhaps this shows the importance of planning for the future financially…not that woman should plan for a divorce, but hey, you never know what’s going to happen.
By Amber Swaney on 06/23/2008 6:59 pm
Mugsy Peabody
This is kind of classic “blame the victim” stuff, Amber. Many women are in situations where they have no employment or access to employment. The past three generations of women in the US are the first to actually work outside the home. And, until social security, so many elderly women were at the hands of relatives to support them. Now that social security is insufficient to deal with the rising prices, the social structure of caring for others in the family is no longer in place. So planning for the future financially? In other circumstances, that would work. But you first have to be in a situation where that is possible.
By Mugsy Peabody on 06/24/2008 2:47 pm
mary lou s
perhaps one should conclude that marriage is a trap—at least heterosexual marriage.
By mary lou s on 06/23/2008 7:30 pm
Ulla
And in the United States, the share of elderly women living in poverty is highest among divorced or separated women” This poll/research rings only too horribly true to me … my divorce certainly threw me totally off track for years … my business and career suffered (not to speak of my meager savings, and borrowed money, going into lawyers’ pockets - my cheating ex had the, previously hidden, funds to drag out the fight …) Besides the emotional it was a severe financial blow, that even now I have not quite caught up with … almost ten years on, during which paying back family and friends their loans became a major issue (finally done! - next goal: paying down the mortgage, after all, this place is supposedly my ‘retirement fund’ …) And now it is even scarier to think, that what I did fight and work for so hard (the home) might not even be worth it all, not to speak of having hardly been able to acquire any other assets, while trying to stay afloat … Yikes, don’t even really want to get thinking about all this, but of course it’s a major topic for many single women over fifty! Vulnerable, indeed!
By Ulla on 06/23/2008 8:54 pm
kermie b
I think Suze Orman is great—she really knocks sense into people. But, when I went to the website you gave, it was all about buying her books, etc. You cannot even get into the website without a passcode from some book. This disappoints me.
By kermie b on 06/24/2008 1:28 am
Diana T
Suze Orman is all about Suze Orman. However, I did buy one of the first books she ever wrote and it was a big help. I put her in the same category as Dr. Phil; go find local people you can sit in the same room with one on one and construct an investment plan that is for your needs. These big names are not reliable over the long run…
By Diana T on 06/24/2008 9:23 am
Mugsy Peabody
I like Karen McCall at www.financialrecovery.com — her book is well worth the money, and it comes with a spreadsheet program that really helps you get clear about things. Suze Orman came to the Oakland Ashram of Gurumayi for years, so I followed what she said, and I think her advice, beyond all the whoopti do, is good advice for anyone. It’s like anything else — in the doing. Karen McCall is really down to earth and smart as hell. Love her.
By Mugsy Peabody on 06/24/2008 7:24 pm
Diana T
Since my husband died 10 yrs. ago, I have had 13 friends that have lost their husbands. I’m lucky because I have a bit of his pension and just started getting my widow benefits. But, when all of us are gathered together, we are all worried about the future, particularly if there is an illness. All of us have had to return to some form of work. A couple of my friends have had to resume their teaching and some of us have taken jobs in sales and a couple of us have part time jobs. We are all what would be considered middle class and well educated. But, there will be no “good easy life” for any of us. .
By Diana T on 06/24/2008 12:21 am
Diana T
When my dear husband died 10 years ago, he was working full time and I had just retired, fortunately with a retirement plan in place from working for 20 years. But, I still lost 66% of my income, even though he left me a pension because he made a large salary. It is just hard for us to plan for something like that. Yes, I have investments, a small pension and now Soc.Sec, but I still have to rely on my resources at the age of 66 with very little hope of retiring again. IT’s the whole thing of starting over again with inflation looming over us for the rest of our lives. One asks about planning when one is young, but when husbands divorce you and leave you with nothing, and you have to support children on your own, somehow savings don’t get put away the way they should.
By Diana T on 06/24/2008 9:20 am
beverly linens
WOW! I came out of a divorce that had gone on for 5 years without a house, without a job or business, no college degree and had salvaged $60,000 cash for myself , from what had been a $180,000 investment with my almost ex. I was 49 years old. I was so angry at myself and him that it took me four months to breath. I paid cash for a little Victorian, that was the cheapest house for sale in all of southeast Portland. I spent the next eleven years polishing and painting and repairing this little house. At sixty this little house made a 50% down payment on a triplex that had provided me with a place to live, two units to rent out, two garages to rent out and a space on the back that I rent out as an art studio, space in the basement for my business. The tax laws are set up to make all this possible. It is the only way I could see for me to have any future at all. I have been able to partially repair the damage of my divorce and the last few years of my marriage. I’m not saying I’m rolling in money I’m not. But the alternative was impossible.
By beverly linens on 06/24/2008 3:56 am
Chrome Toe
I don’t think marriage is the culprit but divorce definitely sucks. Suze Orman is absolutely committed to seeing women take care of themselves financially. she has great books and writes really good articles for MORE Magazine. which i subscribe to. She talks about how women’s relationships with money are often based on fear and that fear causes us to not take the steps we need. at least in my case she’s 100% correct. I sometimes can’t even read her articles as I see the headline and get to scared to read it! Crazy huh? It used to be that i’d sit down to pay bills and start to have an anxiety attack. even after i started making plenty of money to pay them all. I can’t actually seem to conquer my fear of planning for retirement i’m so incredibly afraid of being poor in retirement. so i see how women hurt themselves. I watched my husbands ex wife really hurt herself out of fear. his divorce was long and i came along in his life about eight months into it. it took another two years for it to get done. she did not get at all screwed in the settlement. she got huge alimony for 7 years. more than 50% of the assests. lot’s of cash included in that. At the time of the divorce she was somewhere around 43 or 44 years old. she hadn’t had a job outside the home in 15 years. She took care of herself in the settlement but then… I’m not sure what happened but i am sure it had to do with fear… she didn’t take care of how she would earn an income once the alimony was gone. along with that the stock market and the housing market significantly reduced her asetts. now she’s 52 years old and her earning potential is probably about 30K a year tops. Now her alimony will be gone in a couple of months and she’s going to be hurting. She never should have been hurting. she was set up to do anything she needed to figure out how to earn. she could have started a business or gone to law school for cryin out loud. it was seven years and the kids were teenagers when the divorce was final. I’m so afraid of bein old and in poverty that i’m even afraid for her! and i can’t stand the woman!
By Chrome Toe on 06/24/2008 9:13 am
HA BIBI
KellyKelly, Sounds like a lot of hateing going on. We don’t know the details of the divorce of your husband to his ex and we certainly won’t ask but if she as you say “didn’t work outside the home for 15 years” Maybe just maybe she worked in the home taking care of your husband and their children? Women need to stop bad mouthing their husbands ex wifes.No matter what happened in their marriage, It was theirs and both parties individualy did & handled what they thought was in their best interest going forward as a divorcing couple. Here you state your fears over “bein old and in poverty” and yet you are so worried for a woman you can’t stand. Sounds like the pot calling the kettle black! You as a woman as well as all other women need to quit depending on the men in their lives to supply the means for them to one day retire. Take care of your own responsibilities to yourself and not make it someone elses (your partners) inheirent duty to you. After all the same ex husband to her may one day be the same ex husband to you.
By HA BIBI on 06/24/2008 11:30 am
rocky rocky
To me this seems like the “what can’t you live without” thread. It is clear to me that unless some serendipitous event intercedes I will see a time when I must live without just about everything. Though I worked as hard and smart as I could — and continue to do so, money was never in my cards. But I’ve been there before. And I’ve lived a good long time. Somehow I’m not overly afraid.
By rocky rocky on 06/24/2008 11:38 am
K O
There is another side of the argument to “keeping the house” in a divorce. Before making such a general statement, it is critical that women calculate the “all in” cost, i.e., annual property taxes + debt service (total annual mortgage payments) + property and liability insurance + annual capital expenditures (cost of ongoing maintenance). If this equals more than 30% of her annual before tax income, I suggest that women negotiate hard for cash, then invest in a property she can afford. While it’s a good idea to have an appreciating asset, such as a house, it is most certainly not a good idea to put herself in a “cash poor” position to get it. That increases the possibility that an unforseen emergency could cause her to lose her home.
By K O on 06/24/2008 12:35 pm
mary lou s
good advice, kitty. my 89 year old widowed mother rents, and that makes a lot of sense. they were renting when dad died in 1992. she had to learn how to handle the money, but she has done a good job. the last payments on the farm will end soon, and then she’ll have just her part of dad’s pension and social security. but she has things all figured out. i try to do as well.
By mary lou s on 06/24/2008 2:02 pm