Older Women in the Future:Adapting to Longer LivesTerry KozlowskiMaria MalayterAnna Rappaport

World Future Society Presentation

Saturday July 18, 2009

4:00 – 5:30pm

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The Quiz – please meet your colleagues and brainstorm answers in groups or two or three before presentation starts

Longer life spans – At birth women are expected to live to age ___ and men to age 74

Shorter work histories – women work an average of ___ years less over their lifetimes due largely to caregiving responsibilities

Women are likely to spend their last years alone – after age 85, only ___% of women are married with a spouse present

Women earn less – women earnings are ___% of men’s earnings on average

Bottom line – women’s median retirement income is ___% of men’s median retirement income

Bottom line – ___% of older women alone have virtually no income except Social Security

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The Quiz Answers

Longer life spans – At birth women are expected to live to age 80 and men to age 74

Shorter work histories – women work an average of 12 years less over their lifetimes due largely to caregiving responsibilities

Women are likely to spend their last years alone – after age 85, only 13% of women are married with a spouse present

Women earn less – women earnings are 77% of men’s earnings on average

Bottom line – women’s median retirement income is 58% of men’s median retirement income

Bottom line – 40% of older women alone have virtually no income except Social Security

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Who Are We and Who Are You?

Terry Kozlowski Maria Malayter Anna Rappaport

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Share context, model and story of JoanShare context, model and story of Joan

Today’s Agenda

Small group forecasting exercisesSmall group forecasting exercises

Interactive panel discussion & Q&AInteractive panel discussion & Q&A

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Choices in Longer Lives Impacted by Three Stages of Capability

Active Somewhat limited Very limited

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Challenges of women living longer

Dealing with frequent change and transitions: in activity level, working or not working, age, health status, family status, social engagement

Longer lives – life spans increasing about one year per decade

The community and the family are key – how will they evolve?

Many older women alone – today 85% of those over age 85 are alone

Need to work longer – with uncertain opportunities Growing personal responsibility for security Planning often focused on active, healthy stage Complex and highly personal retirement considerations

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Retirement considerations

Pre-retirees expect to retire differently than current retirees New work/engagement/learning/leisure models Those who expect to work are unlikely to do so after age 75 Couple issues

– Timing of retirement – same or different? Relationship issues Social Security/financial issues Work history affects old age security

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Reinvention 4 RetirementR4R: A Life Planning and Wellness Decision Making Model ©

Financial Legal PhysicalHealth

Benefits

Emotional GeographyMeaningful

Work

Spiritual Intellectual

Companionship

© Maria Malayter

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The Story of JoanThe Story of Joan

Next Section

Small group forecasting Small group forecasting

Panel and Q&APanel and Q&A

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Story of Joan – Active

Age 60

Robert - age 65

Two careers

– Teacher

– Public administrator

Active in community and attend regular study groups at the synagogue

Own home in suburb

Investigating when to retire

Both very active

Joan in excellent health

Robert has history of some heart disease

Children grown and left home

Happily married

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Joan at 65 – Active

Robert - age 70

Two careers – both in transition

– Joan – part-time

– Robert consults 2 days per month on average

Robert on board of two community mental health groups

Decided not to move at this time, but their study is exploring various senior housing options

More time is spent in study groups and at synagogue

Traveling a lot to reconnect to family and friends that they have not seen for many years – including several overseas trips

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Joan at 70 – Active

Robert - age 75

Active/walk daily

Both fully retired

Slowing down a little

Both of them have reasonable computer skills

Happy

Enjoying retirement

No special costs

Four children – all far away

Work hard to see all of them and their grandchildren

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Joan at 73 – Active

Joan active, but Robert limited

House and yard care is hard

Trapped in winter

Exploring new options

Health - Joan still good, but Robert no

Joan very concerned about how to manage house, care for Robert if he becomes ill

Children call her a couple of days a week

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Joan at 75 – Active

Widowed

Relocates to independent living

– Dinner provided

– Weekly cleaning

– Activities

– Transportation

Cost = $2,500 per month

Works with a friend to read German every two weeks

Still occasionally attends a study group

Plays bridge 2x per week

Goes to regular exercise class

Elected to Resident’s Council

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Joan at 76 – Somewhat Limited

Diagnosed with Parkinson’s

Medications

Stops driving

Cost - $2,500/month for facility

Health benefits from Robert’s former employer pay for drug costs

Friends pick her up so can go to study group

Still participates in exercise class

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Joan at 77 – Somewhat Limited

Needs help with bill paying, shopping, errands, and doctor’s appointments

Can still take short walks independently

Family members arrange for accountant’s assistant to spend about 6 hours weekly helping Joan

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Joan at 78 – Somewhat Limited

Can’t manage medication

Can no longer use answering machine

Paid helper 3 hours per day + added help 6 hours per week

No longer attending study group or seeing the friends that she regularly saw in previous years

Cost - Housing $2,500 per month +

$1,500 per month for helper and assistant

Concern expressed that she needs to move near family and get more help

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Joan at 80 – Very Limited

Needs help with bathing, dressing and medication

Moves to assisted living relocating to in an area near two of her children

Family member helps 2 to 3 times/week

Participates in limited activities at assisted living

Son had young children, and they brought her a lot of joy

Cost = $4,000 per month

– All meals

– Administering medication

– Assistance with daily activities

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Joan at 82 – Very Limited

Extreme difficulty walking

Can’t feed herself

Confused sometimes

Difficulty speaking

Moves to nursing home very near another child

Her son visits her nearly daily and feeds her lunch

Cost = $6,000 per month for nursing home

Very limited interaction with others

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Legal and financial management

Trust established after Robert died– Two of her children are co-trustees– Health care power of attorney set up – designee changed as she

moved to be near different children– Children worked with accountant, investment advisor so that they

knew them when she become incapacitated Paid own bills initially, then had someone check her, and ultimately

one of her children took over Handled own investments initially, then helped by advisor, and

ultimately advisor took over – trustees supervised Had long term care insurance Had medical coverage based on former husband’s employment

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The Boomers vs. the Prior Cohort Future Groups will be different

More Boomers—very large cohort Two distinct groups—early vs. late Boomers Boomers have higher expectations/more education More Boomers are divorced

– 13% of men age 55-64 in 2004 vs. 10% in 1994 and 6% in 1984

– 18% of women vs. 13% and 9% After many years of earlier retirement, later retirement Pension coverage has shifted to defined contribution More people age 55-64 have health insurance (because

more women are covered) More people own long-term care insurance

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Research: Not Your Mother’s Retirement

Daughters are likely to work longer than their mothers– 13% of daughters expect to retire before 60 compared to

41% of mothers Mothers grew up in time of depression and daughters in

more prosperous times Daughters report more debt Both groups expect daughters to have more active and

interesting retirement, i.e. better quality of retirement

Source: It’s Not Your Mother’s Retirement: A MetLife Study of Women and Generational Differences, MetLife Mature Market Institute, May, 2007

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Next Section

Context, Model, JoanContext, Model, Joan

Small group forecasting exercisesSmall group forecasting exercises

Panel & Q&APanel & Q&A

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Exercise #1 – 20 years from today

What will be different 20 years from today? What will be the impact on society of the issues surrounding

older women? How should society respond to the changes that are likely? What will women need to do to prepare themselves for the

future?

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Exercise #2 – 40 years from today

What will be different 40 years from today? What will be the impact on society of the issues surrounding

older women? How should society respond to the changes that are likely? What will women need to do to prepare themselves for the

future?

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Next Section

Context, Model, JoanContext, Model, Joan

Group Forecasting ExercisesGroup Forecasting Exercises

Interactive panel discussion & Q&AInteractive panel discussion & Q&A

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Potential Panel and Audience Questions

1. What are our predictions for the future?

2. What will change between age 60 and age 80? How will we think about this time period in people’s lives?

3. What products and services different from what is on the market today will we need? What opportunities do they create?

4. What social models and cooperative patterns can support emerging patterns? Which are new or transformed?

5. What can we do as an individual to prepare for change?

6. What are the implications for policy makers?

7. What traps are out there – particularly on a personal level?

8. What additional advice do you have?

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Older Women in the Future:Adapting to Longer Lives

Terry Kozlowskihttp://achievementorgroup.com

Maria Malayter http://nl.edu/positiveaging.comhttp://docmaria.com

Anna Rappaporthttp://annarappaport.com

Contact Presenters for Questions and Continued Conversation

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APPENDIX: Supplemental Information

Risks of Post-retirement Period Post-Retirement Events Trends and Realities Women Alone Age 65+ Family Structure and Old Age Security Things for Individuals to Think About Traps: Some Common Pitfalls as We Think about Long Life

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Risks of Post-Retirement Period

Outliving assets

Loss of spouse

Declining functional status

Unexpected medical costs

Inflation

Investment risks on resources

Unexpected family needs

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Post-Retirement Events

Inflation

Death of family members

Change in functional status

Unanticipated needs by family members (children, grandchildren)

Unanticipated medical needs

Changes in housing needs

Special interests

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Trends and RealitiesU.S. Life Expectancies

Males 1900 1920 1940 1960 1980 2000 2050 projection

Birth 46.4 54.5 61.4 66.7 69.9 74.0 79.4

Age 65 11.4 11.8 11.9 12.9 14.0 15.9 18.9

Age 85 3.7 4.0 4.1 4.6 5.1 5.2 6.3

Females

Birth 49.0 56.3 65.7 73.2 77.5 79.4 83.2

Age 65 12.0 12.3 13.4 15.9 18.4 19.0 21.4

Age 85 4.0 4.1 4.4 5.1 6.3 6.4 7.5

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Source: U.S. Social Security Administration Periodic Life Tables 1900–2100.

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Poor or Near PoorWomen Alone Age 65 +

The percentage of non-married elderly womenwho are poor or near poor by age

Age Percent Poor or Near Poor

65-69 27%

70-74 29%

75-79 30%

80-84 27%

85 and older 33%

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Source: Center for Retirement Research at Boston College, Why Are So Many Older Women Poor, Just the Facts on Retirement Issues, April 2004, page 5.

Note: For 2006, the official poverty thresholds are annual income of $9,669 for a single person age 65 or over, and $12,201 for a two person household, with a householder over age 65.  The corresponding amounts when the householder is under 65 are $10,488 and $13,569.

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Family Structure and Old Age Security

Role and importance of family members

– Provide care

– Arrange for care

– Provide help with tasks Shopping Shoveling snow Paying bills

– Provide economic support

– Help with decision making

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Family Structure and Old Age Security (Continued)

Family structure issues

– Marital status

– Availability of children/family members Help with tasks Care Economic support

– Children, grandchildren needing support

– Migration patterns “Very old” return to area near children

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Things for individuals to think about

Timing of retirement Working longer—maybe as part of retirement Long-term vs. short-term thinking Role of spousal benefits and protections Benefits and divorce If and when to annuitize Where to live and whether housing wealth will be used to

help pay for retirement Which decisions are “cast in stone” and when you can

change your mind

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Traps: Some common pitfalls as we think about long life

Retiring or taking benefits too early Planning for a short period Overestimating how much “life” we can buy from savings Not planning for widowhood Not thinking about the unexpected

– Don’t know how long we will live, when we might get sick

Not planning for long-term healthcare needs as we age Not focusing on where we will live, what we will do in a new

life phaseBut—remember this is all very challenging

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