Women be warned! The Bush Administration plan to reform Social Security is an assault on the interests of women.
Women are much more dependent on it than men, due to longer life expectancies, lower earnings and other factors.
According to Social Security Administration statistics:
- Women reaching age 65 in 2004 have an average life expectancy of an additional 20 years
compared with 17 years for men. In consequence, approximately 58% of Social Security
beneficiaries age 62 and older are women, and the figure rises to 70% for beneficiaries
85 and older;
- While in theory we live in a world of equal-pay-for-equal- work, the fact is that median
earnings for full-time work are still around $30,203 for women compared to $39,429 for men.
As a result, women tend to have lower pension benefits and less in retirement accounts and
other savings for their senior years;
- Spouses, divorced spouses, elderly widows, and widows with young children may also be
dependent on Social Security; and
- For unmarried women (including widows) 65 and older, Social Security comprises 52% of total
income, compared to 38% for unmarried men and 35% for couples
Not only will the Bush partial privatization plan fail to address the fiscal problems projected
for Social Security after 2040, it will make them worse. Diverting payroll taxes to private
accounts will necessitate $2 trillion in additional borrowing to cover transition costs, at a
time when the national debt already exceeds $7.6 trillion. Worse still, as the White House has
finally admitted, the switch from wage-indexing to price-indexing of benefits that is an
essential element of the plan will result in severe reductions of benefits. Younger workers
today will face benefits cuts of up to 49% when they retire over the next few decades.
If you are a woman approaching retirement -- or care about a spouse, mother, daughter or
other relative friend – you need to understand the current Social Security debate. How
does the Social Security System work? What is President Bush proposing? Why are women's
groups, among many others, opposing the Bush plan? And what policy options are available to
fix defects in Social Security without undermining the system and destroying this ultimate
safety net for seniors?
For answers, consult the attached briefing paper by Jan Schneider. Jan came close to
defeating former Florida Secretary of State Katherine Harris for the United States House of
Representatives in the Florida 13th Congressional District. Jan is continuing her crusade
to protect the interests of seniors, women and veterans. For further information, see
"Saving Social Security" by Jan Schneider.
|
