Updated: December 18, 2009
Social Security is one of our country's most successful anti-poverty programs, providing benefits to children, disabled workers, surviving spouses, and retirees. Without Social Security benefits, more than half of older women would fall into poverty. However, there is growing movement in the Senate to reduce the federal budget deficit by cutting Social Security and Medicare programs, which would have a devastating and disproportionately negative impact on women. Urge your senators to oppose cuts to these programs.
Several senators have threatened to hold up other budget legislation unless a debt-reducing, entitlement-cutting commission is established. This commission's recommendations would be crafted behind closed doors, the normal process of debate would be ignored, and no amendments would be allowed before a vote. This 'all or nothing' commission would fast-track cuts to these critical programs. AAUW opposes this clearly undemocratic, non-transparent commission process.
The Social Security program continues to run a surplus and is expected to be able to pay full benefits for another 30 years without affecting the deficit, giving Congress ample time to make adjustments to future benefits through the normal legislative process. And the best way to way to reign in the costs of Medicare is through the current health care reform bills, not by cutting benefits to the millions of Americans who depend on the program for their health care.
More than two-thirds of unmarried women would be living below the poverty line without the help of Social Security, which also supports more children than Temporary Assistance for Needy Families (TANF), also known as welfare. In these tough economic times, cutting social programs like Social Security and Medicare could be devastating to women and families across our nation. Now more than ever, these programs need to be protected and expanded. AAUW is not opposed to reforming and improving these programs, but we must tell the Senate that the 'all or nothing,' undemocratic process of the commission is not the way to do it.
Urge your senators to oppose the formulation of an undemocratic commission that would target Social Security and Medicare programs. For more information, read our position papers on Social Security.
- from AAUW's Action Network for December 16, 2009.
New enhancements added to the Social Security Administration's website provide for immediate and personalized estimates of benefits using the "Retirement Estimator" tool. Those enrolled in Medicare who have yet to file for Social Security benefits no longer have to contact their local office to obtain information on their retirement benefits. In addition, this same tool will be available for use in Spanish next year, making it the first online service in Spanish offered by the government.
- from AAUW's Washington Update for November 20, 2009.
Recent economic troubles are prompting many watchdogs for women’s rights to voice growing concern over women’s retirement security, Women’s E-news reported on Tuesday. Data collected by Vanguard indicates that women have a smaller cushion in their plans, with men on average having invested $40,000 more than women in retirement funds. WISER, a women’s retirement advocacy group, also noted that smaller losses hit women harder as about 1.4 million more women than men live in poverty. The demise of retirement savings will likely also force older women to work longer and to return to the workforce if they have already entered retirement. This crisis on Wall Street should be a wake-up call for the next administration to protect Social Security to ensure that women have a secure future in retirement.
AAUW is committed to a Social Security system that provides lifelong protections for women and families that include guaranteed benefits with cost-of-living adjustments. Women are more dependent on Social Security then men are, because they earn less than men while in the workforce, are less likely to receive a pension, are usually in the workforce for shorter periods of time due to care giving responsibilities, and live longer on average than men. Read AAUW’s position papers on women and Social Security and Social Security privatization.
- from AAUW's Washington Update for Sept. 19, 2008.
Thursday marked the 73rd anniversary of the signing of the Social Security Act by President Franklin Roosevelt. One of our country’s most successful anti-poverty programs, Social Security greatly benefits America’s women. In fact, more than half of older women in the United States would fall into poverty without Social Security benefits.
AAUW is firmly against privatizing all or part of the current Social Security program, since that would eliminate many of the guaranteed benefits women need and jeopardize important benefits to children, especially women and children of color. Social Security’s long-term solvency needs to be strengthened, not weakened through privatization. For more information, read AAUW’s position papers on women and Social Security and Social Security privatization.
- from AAUW's Washington Update for Aug. 15, 2008.
The Social Security Administration unveiled a new online calculator for retirement planning that helps you estimate your retirement benefits at different ages.
The Retirement Estimator produces estimates that are based on your actual Social Security earnings record. Retirement estimates are just that, estimates. They will vary slightly from the actual benefit you may receive in the future because:
On May 13, AARP released its economic survey conducted through a telephone poll of 1,002 respondents ages 45 and older. They found that 81 percent of Americans surveyed feel the economy is in fairly bad or very bad condition and 3 in 4 respondents feel that elected officials were not assisting constituents. The survey reveals the tough economic realities as almost 25 percent of respondents have stopped investing in retirement vehicles and 27 percent of respondents have put off financial responsibilities like bills. Americans 65 and older who survive on fixed incomes report in 59 percent of cases that they have cut back on essentials, while 34 percent are helping their children pay bills. Conversely, 11 percent of respondents 65 years and older have either sought out help from relatives and friends or other avenues to cover expenses. Unfortunately, 75 percent of respondents believe the economy is getting worse and 64 percent believe that the pandemic of foreclosures is hurting the national economy.
As the economic situation becomes grimmer, AAUW feels that there is a need to address gaps between men and women in our social security program as many Americans are dependent on government income streams. For additional information on AAUW’s position on Social Security and women, you can read Women, Retirement, and Social Security. AAUW also believes that the burden of economic hardship during the later years of women’s lives could be relieved by taking steps to close the persistent gender wage gap. For additional information on AAUW’s position on pay equity, you can read Pay Equity: A Simpler Matter of Fairness.
- from AAUW's Washington Update for May 23, 2008.
The Board of Trustees of the Social Security and Medicare trust funds recently released their 2008 annual report on the current and projected financial status of the two programs, and the National Academy of Social Insurance recently released a new brief on the report. Social Security Finances: Findings of the 2008 Trustees Report shows that 50 million people—about one in every six U.S. residents—received Social Security benefits in Jan. 2008, and Social Security reserves are projected to be depleted by 2041. After that time, tax income coming into the trust fund will cover about 78 percent of benefits due. The brief also answers many common questions about Social Security, including how actuaries project the future, what the trustees’ project for the near term and for the next 75 years, and how the 2008 estimated projections compare to past reports.
According to Congressional Quarterly, the current annual report from the board of trustees is the first one since 1990 to come from a board lacking independent outsiders, which some say may weaken its credibility. The board normally consists of six trustees, four of whom serve by virtue of their positions in the federal government: the Secretary of the Treasury (Henry Paulson), the Secretary of Labor (Elaine Chao), the Secretary of Health and Human Services (Michael Leavitt), and the Commissioner of Social Security (Michael Astrue). In addition, two other trustees are public representatives appointed by the President, subject to confirmation by the Senate. However, the two public trustee positions are currently vacant.
The current Social Security system is more than just a retirement program; across the lifespan, it is one of the most successful anti-poverty programs in our nation’s history, providing benefits to many children, disabled workers, surviving spouses, and retirees. Older women also benefit greatly from this program, since many depend on Social Security as their primary source of retirement income. AAUW is firmly against privatizing all or part of the current Social Security program, since that would eliminate many of the guaranteed benefits women need and jeopardize important benefits to children, especially women and children of color. Social Security’s long-term solvency needs to be strengthened, not weakened through privatization. For more information, read AAUW’s position papers on Social Security privatization and women and Social Security.
- from AAUW's Washington Update for March 28, 2008.
As the first of the Baby Boomers began to file for Social Security benefits this month, Women’s eNews this week ran an article about the gap in earnings and income women face when they retire. The article reiterates many things that AAUW has said for years–that women have less retirement income than men, largely because of fewer years in the workforce due to family responsibilities and lower earnings when they are working due to pay discrimination. Therefore, women have a greater dependency on Social Security, and education about the “retirement gap” may be a component to its solution. The Women’s Institute for a Secure Retirement (WISER) and the Heinz Family Philanthropies published What Women Need to Know About Retirement, an online book with step-by-step instructions and advice for women planning their financial futures. The Women’s Bureau at the U.S. Department of Labor created Wi$e Up, a curriculum of financial literacy, including teleconference calls and web seminars, geared towards helping younger women plan ahead.
As many women depend on Social Security as their primary source of retirement income, AAUW believes that any Social Security improvements must maintain guaranteed benefits and consider the inequity of pension benefits and retirement security for women. AAUW is firmly against privatizing all or part of the current Social Security program, since that would eliminate many of the guaranteed benefits women need and jeopardize important benefits to children, especially women and children of color. Social Security’s long-term solvency needs to be strengthened, not weakened through privatization. For more information, read AAUW’s position papers on women and Social Security and Social Security privatization.
- from AAUW's Washington Update for November 2, 2007.
About 71 percent of older Americans living in poverty were women in 2003, according to the Population Resource Center in Washington and Princeton, N.J. Currently, more than half of Social Security beneficiaries are women, and women are an even greater proportion of beneficiaries over the age of 85.
Women can be expected to depend disproportionately on Social Security and to increasingly join men in working longer in paid employment. The participation of older women in the paid work force has steadily increased over the last decade, according to the U.S. Department of Labor. In 1986, about 22 percent of women over 55 were working; in 2006 that had risen to 32 percent, getting nearer to the 44 percent of men who work past 55.
Some women defer saving for retirement because their income covers only current basic expenses, including health care costs. According to the 2005 data from the U.S. Census Bureau, women earn 77 cents for every dollar earned by men. Because pension plans and Social Security are calculated from wages, women are at a collective disadvantage, and because they earn less they have fewer opportunities to save. Furthermore, women are more likely than men to take time out of work--from caring for kids to caring for elderly relatives--further reducing earnings. Longer life expectancy also means that women need to stretch savings longer, especially as they outlive their husbands and their incomes.
- from a Women's eNews article on Oct. 31, 2007.
The U.S. Government Accountability Office recently released a report on the challenges women face in ensuring financial security in retirement. The report reiterates many things that AAUW has said for years–that women have less retirement income than men, largely because of fewer years in the workforce due to family responsibilities and lower earnings when they are working. Women’s median Social Security income is 70 percent of men’s and fewer women have pensions and other major retirement sources, which leads women age 65 and over to have substantially higher poverty rates than men. Read a summary of the report, Retirement Security: Women Face Challenges in Ensuring Financial Security in Retirement, or download the entire report from the GAO’s website.
As many women depend on Social Security as their primary source of retirement income, AAUW believes that any Social Security improvements must maintain guaranteed benefits and consider the inequity of pension benefits and retirement security for women. AAUW is firmly against privatizing all or part of the current Social Security program, since that would eliminate many of the guaranteed benefits women need and jeopardize important benefits to children, especially women and children of color. Social Security’s long-term solvency needs to be strengthened, not weakened through privatization. For more information, read AAUW’s position papers on women and Social Security and Social Security privatization.
- from AAUW's Washington Update for October 12, 2007.
On Monday, the U.S. Treasury Department released the first in what is expected to be a series of reports on the status, challenges, and potential future of Social Security. The paper, which stated that the program will require either tax increases or benefit cuts in the years ahead, was seen as an attempt by the Bush administration to garner support for restructuring the program to ensure its long-term viability. According to Congressional Quarterly, Senate Budget Committee Chairman Kent Conrad (D-ND) and Ranking Minority Member Judd Gregg (R-NH) on Sept. 18 introduced the Bipartisan Task Force for Responsible Fiscal Action Act of 2007 (S.2063), which would create a task force to make recommendations for addressing the Social Security, Medicare, Medicaid and other entitlement programs by December 2008. Reps. Frank Wolf (R-VA) and Jim Cooper (D-TN) introduced the companion bill (H.R. 3655) in the House on Sept. 25.
The current Social Security system is more than just a retirement program; across the lifespan, it is one of the most successful anti-poverty programs in our nation’s history, providing benefits to many children, disabled workers, surviving spouses, and retirees. Older women also benefit greatly from this program, since many depend on Social Security as their primary source of retirement income. For more information, read AAUW’s position papers on Social Security privatization and women and Social Security.
- from AAUW's Washington Update for September 28, 2007.
Older women are staying in the workforce later in life, according to Statistics Canada and CBC News. A study published by Statistics Canada in August shows 51 percent of women aged 55 to 64 remained in the workforce in 2006, up from 32 percent in 1976. A stronger attachment to the workforce throughout their life and increasing levels of education – and therefore employment opportunities – are cited as two possible reasons. The report also noted that while older men have higher hourly earnings than younger men, older women earn slightly less than younger women and earn about $300 a week less than their male counterparts, explained in part by the fact that approximately 25 percent of older women work part time.
The AAUW Educational Foundation’s report, Behind the Pay Gap, examines the wage gap between men and women nationwide and shows that just one year out of college, women working full time already earn less than their male colleagues, even when they work in the same field. Ten years after graduation, the pay gap widens. ACTION: AAUW strongly supports legislation that seeks to end wage discrimination and close the persistent and sizable wage gaps between men and women, and minorities as well. If you haven’t yet done so, please use AAUW’s Two-Minute Activist online to urge your members of Congress to support the Fair Pay Restoration Act (S. 1843) - the companion to the Lilly Ledbetter Fair Pay Act (H.R. 2831) - as well as the Paycheck Fairness Act (H.R. 1338/S. 766) in the House and in the Senate. To learn more about pay equity, read AAUW’s position paper.
- from AAUW's Washington Update for September 21, 2007.