Singletary

It comes down to this: There’s a trifecta effect for older unemployed women. In looking for work, they are more likely to face age discrimination. Once they lose their job, they experience a longer period of unemployment. And if they do find work, they often have to take a pay cut.

Caregiving issues have also exacerbated already tenuous job situations. Women were limited to certain shifts or couldn’t work full time, because they were caring for a child or a grandchild. This finding makes the case to continue or expand flexible work.

And of course, losing one’s job affects one’s ability to handle everyday expenses, and this leads to more debt. Nearly one-quarter of women who lost their income increased their credit card debt. Twenty percent had to borrow money from family, and 11% were forced to take money from a retirement savings account.

Here’s why this report matters, said Susan Weinstock, vice president of financial resilience programming at AARP. As the United States recovers from the pandemic, we’ve got to consider the disparate impact on older women. If their employment is severely disrupted and their income lower, this affect their retirement security. We already know that far too many people are forced to live just on Social Security. According to Gallup, 57% of retired U.S. adults say they rely on Social Security as a major income source.

“That work or job is a key to your financial resilience,” Weinstock said in an interview. “Having the ability to have a decent job that pays a good salary is going to give you the ability to be financially secure.”

The accumulation of debt to make ends meet will also push women further back financially. Pessimism about their ability to recover was profound. Many women whose financial situation got worse during the pandemic believe their financial recovery could take as long as five years, according to the AARP report.

“That credit card debt is going to come back to haunt them for years with the high interest rates,” Weinstock said. “Every year they are in debt or having trouble just compounds. Just like compound interest can be so helpful, it can work in the other direction, putting you in a worse-off situation.”

Even if they are employed or find a job, older women are worried about furloughs or layoffs in the next year.

“Economic recovery should include additional help for caregivers and flexible work options, as well as continued efforts to eliminate age discrimination in both hiring and access to opportunities at work,” the AARP report said.

Well said, because this isn’t just a women’s issue.

Readers can write to Michelle Singletary c/o The Washington Post, 1301 K St., N.W., Washington, D.C. 20071. Her email address is michelle.singletary@ washpost.com. Follow her on Twitter (@ SingletaryM) or Facebook (www.facebook.com/ MichelleSingletary). Comments and questions are welcome, but due to the volume of mail, personal responses may not be possible. Please also note comments or questions may be used in a future column, with the writer’s name, unless a specific request to do otherwise is indicated.