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Not Ready to Retire: Many TX Women Have Little Saved
- Updated: October 10, 2014
by John Michaelson/TNS
HOUSTON – Across the state of Texas, many workers dream of the day when they’ll finally reach that age of retirement, but new research shows many of those getting closer to retirement are nowhere near ready financially. Cheryl Matheis, senior principal and counsel with AARP, says their new study found one quarter of all Texans, ages 40 to 64, have less than $5,000 in savings. The situation is even worse for women.
“A third of these women are likely to be single and living alone, because they live longer, because divorces are more common,” Matheis says. “The most recent data also shows women are earning 78-cents for every dollar a man earns.”
The financial security of women is the focus of a forum today at Texas Women’s University in Houston.
A new study from AARP finds many older workers in Texas, especially women, have little saved as they approach retirement. Photo: Claudia A. De La Garza/Flickr.
The discussions will outline possible solutions and Matheis says, as pensions disappear and the cost of health care continues to climb, one key is to strengthen Social Security.
“Because Social Security was never intended to be anyone’s full retirement, but it is the backbone,” she says. “The average Social Security benefit is $1,200 a month and almost one-in-four people who are over 65 rely solely on that for their income. So it is absolutely critical Social Security not be undercut at this time. ”
Another major factor in the financial insecurity of both women and men is a large portion of them lack access to a workplace savings plan, such as a 401-k. Matheis says one way to close that gap would be for Texas to establish a retirement vehicle any worker statewide could access.
“There’s no cost to the employer. It’s just the employees’ money but it allows the employee to set aside a percentage of money and they can take it from job to job,” says Matheis. “Frankly, you and I know if you don’t have the money taken out of your paycheck before you see it, you’re much less likely to ever set it aside and put it into a savings account.”
Matheis says providing options to help Texans do more to take care of themselves financially during retirement means more dignity and independence and less reliance on taxpayer-funded public programs.
