Older divorcees face life on streets

You can do remarkably well in life, earn a lot of money and have numerous tertiary qualifications, but as soon as you divorce “it is a different story”, Dr Andrea Sharam from Victoria’s Swinburne University, says.

The comment came after the review of a new Salvation Army study which shows middle-class divorcees risk poverty and homelessness as they grow older.

Coinciding with Anti-Poverty Week which was marked last week, Dr Sharam tells DPS News women over the age of 40 years, who return to renting, may never “get back” into the housing market.

“Women will get to retirement age and they will not own their own home, which means they will be paying and living far under the income level that the university acknowledges necessary,” Dr Sharam explains.

The survey of 111 Victorian women over the age of 40 years who did not expect to own their own homes before retirement, revealed 77% of these women were still renting despite 79% holding tertiary degrees and 76% employed with a median income of $50,000.

Two-thirds of the women surveyed reportedly expected to have $100,000 or less in superannuation at retirement, while more than half were in debt and those earning more than $70,000 reportedly had “minimal savings”.

Dr Sharam, who believes the number of financially vulnerable older women will “jump dramatically” as baby boomers reach retirement age, claims the homelessness system is “not set up for older women”.

“The report reveals the sector itself needs to recognise and start thinking about what kind of assistance they can offer these women,” she says.

Describing it as a “wake up call” across the whole welfare sector, Dr Sharam says the government needs to help community housing providers assist older women in feeling “secure” for their future.

“Housing is the best security for retirement… women need to think about it from a much earlier age to ensure they are in an okay place by their 40s,” she claims.

Older baby boomer facts:

• Women are reaching their 60s with half the superannuation of men
• The number of women living alone is growing rapidly, and it is expected to reach 1.8 million by 2013
• Women are marrying and starting families later in life
• Women tend to get the house and the mortgage, but over time they often lose the house because they have unpaid debts

Are you an older divorcee? Tell us if you are concerned about this latest study by commenting in the box below.