Racial and Ethnic Differences in Women's Retirement Security

Abstract

Women face a greater risk of poverty than men as they get older, but this risk varies considerably by race and ethnicity. Using data from the Census Bureau's 2002–2005 March Current Population Surveys, this article examines racial and ethnic differences in women's retirement security, with special attention given to differences in their marital status and living arrangements in old age. Findings show that African American and Hispanic women are more likely than white or Asian American women to be unmarried at ages 65 and older. Older minority women are also much more likely than older white women to live in extended family households, regardless of marital status. The poverty rate is lower for those living in extended family households than those living alone, indicating a potential safety net provided by other family members; yet, the degree of economic support received from extended family arrangements tends to vary by race and ethnicity. The examination of personal sources of retirement income—Social Security, pensions, and assets—indicates that an above poverty household income does not necessarily reflect a personal level of financial security. The level of women's retirement security coming from all income sources varies by race and ethnicity, marital status, and living arrangements.