Less Poverty among Widows

Widows aren't as poor as they used to be. The poverty rate of widows fell from 20 to 13 percent between 1994 and 2014, according to the Center for Retirement Research. To find out why the poverty rate of widows has declined, CRR researchers analyzed data from the 1994 and 2014 waves of the Health and Retirement Study, linking widows aged 65 to 85 in the HRS with their Social Security earnings and benefits records. The poverty rate of widows has declined for two reasons, the researchers found—increased education and labor force participation.

Education: The widows of 2014 had an average of 12.1 years of schooling compared with only 10.7 years of schooling for their 1994 counterparts. More education equals higher earnings and bigger Social Security benefits, reducing poverty.

Labor force participation: The widows of 2014 had worked for 25.2 years, on average, compared with 14.7 years of work for the 1994 widows. More years in the labor force equals higher Social Security benefits and less poverty.

The poverty rate of widows will continue to decline, the researchers predict, falling to 8 percent by 2029. While educational attainment and labor force participation will be factors in the continuing decline, just as important will be marital selection—the greater likelihood of marriage among better educated women. Unlike in decades past, better educated women today are more likely to marry (and less likely to divorce if married) than their less-educated counterparts. Consequently, the pool of widows is becoming increasingly educated and less likely to be poor.

Source: Center for Retirement Research at Boston College, What Factors Explain the Decline in Widows' Poverty?