Older Canadian women are more likely to be financially insecure than men, a new report says.
Nearly a quarter of women over 50 reported having inadequate income, compared to about a fifth of men, the report from the National Institute of Ageing says.
The report shows a similar schism in retirement savings, with 26 per cent of women having $5,000 or less saved for retirement versus 19 per cent of men.
The results are from a national online survey of Canadians over 50 conducted by the National Institute on Ageing.
The institute’s report is the first in a three-part series on women and aging and is the first time the institute has produced a report specifically about women.
“When we look at the older women of today, these are women who have seen enormous transformations in their lifespan in terms of the proportion of women in the workforce, changing family dynamics, smaller family sizes,” said Talia Bronstein, the institute’s director of policy and one of the report’s authors.
Studying women’s experiences of aging can show how these societal changes impact them throughout their lives.
Inadequate incomes
The report compared the experiences of older women with adequate incomes to those without.
The survey did not ask respondents how much their income was. Instead, it asked them to say whether their income was “adequate” — meaning it was enough for them and allowed them to save.
Women who said their income was inadequate were more likely to report social isolation, poorer physical and mental health and negative perceptions of aging.
Only 23 per cent of women with inadequate incomes reported having weekly social activities and 60 per cent said they wanted to participate in more social activities.
Income appears to be the biggest barrier to greater social participation.
Two-thirds of women with inadequate incomes said cost was a barrier, compared to about a quarter of women with adequate incomes.
Bronstein, at the National Institute of Ageing, says this data should encourage community organizations to provide free or low-cost activities for seniors.
“You can’t force people to go to things together,” she said.
“But I think it’s an interesting opportunity for community organizations to think about how do we create those linkages where people are building relationships in smaller settings. Perhaps that builds the confidence to go to a bigger group setting.”
Views of aging
Having an adequate income was closely linked to having a positive view of aging.
“Women who report inadequate incomes were the only demographic group featured in this report where a majority (54 per cent) feel negative about the experience of getting older,” the report says.
Bronstein says she hopes this research motivates governments to address income and employment gaps for women earlier in life, including addressing the needs of caregivers. According to the survey, slightly more women than men reported being caregivers.
Caregiving can be one reason why women have lower incomes than men, says Bronstein, especially since women often work less due to having children.
In the institute’s report, women were less likely to be working. Only 31 per cent of older women were working, compared to 39 per cent of older men.
The federal government could help caregivers by making the Canada Caregiver Credit refundable, says Bronstein. Workplaces could also increase their support for caregivers.
Governments must specifically consider women’s needs when they make financial policies, Bronstein says.
“When we’re looking at the financial security of older adults, we really need to look at the system as a whole,” she said.
“Women are at risk of facing a cumulative economic disadvantage over their lifespans, stemming from gender pay gaps, career interruptions for caregiving, and a higher likelihood of part-time work,” the report says.
“[This] can translate into lower lifelong earnings and reduced retirement savings resulting in them experiencing less financial security as they age.”
