December 28, 2006 11:20 PM

Bag Lady fears may not be unfounded
Posted by Diane Danielsonat 11:20 PM

While I'm not big on resolutions, maxing out your 401K or an IRA is one resolution that shouldn't be a resolution, but a non-negotiable like paying taxes.   A recent article from the Chicago Times Old Story: Women May Have it Worse" reminds us how much "taking time off" from the workplace or working part-time can hurt us in the long run.

To a degree, the retirement security of women is jeopardized by the same trends affecting men, such as cutbacks in corporate pensions. But experts say the threat to women is amplified by a confluence of factors, including:

•  Higher overall rates of divorce and singlehood. Record numbers of women are heading toward later life without the backup of a partner's savings and income. Unmarried, older women have higher poverty rates than their male counterparts and much higher poverty rates than married women, government data show.

•  Interrupted working years. Although baby boom women generally have more education and work skills than their mothers, many quit jobs or work part time to care for children or ailing relatives. Such efforts may be cherished by family members, but they slash retirement benefits.

•  Long lives. At age 65, women are expected to live an average of three years longer than men. This greater longevity magnifies several risks to retirement security, including raising the danger that a woman will outlast her savings or incur costly medical bills without help from a spouse.

In addition to these factors, women overall still earn less than men and have less in the way of retirement benefits for old age.

The article also discusses a bill that has been proposed to allow 401K contributions by part-time workers, called the Women's Retirement Security Act.  The bill was proposed by bi-partisan group including Mass. Senator John Kerry back in September.  *Note that the bill is just not to help women, but small business owners as a group, too.