Nevada County Picayune and Gurdon Times Newspaper Archive

Social Security

For 60 years Social Security has provided basic financial protection at a worker's retirement, death or disability. And this protection extends to women as workers, spouses or dependents.

In 1997 more women (19 million) than men (13 million) aged 65 and older received monthly Social Security benefits. One-third of these women received an average monthly benefit of $650 from their own earnings. Spouses received $400 a month, and widows $730.

Women's life expectancy exceeds men's, so they get benefits longer time. They especially benefit from the 1972 automatic cost-of-living adjustment.

For one in four elderly women Social Security is the only source of income. Social Security provides half or more income for three out of four of them.

Women with dependent children of the deceased worker are entitled to survivor benefits for themselves and their children while the children are school age.

Women benefit from weighting in the benefit formula. Since 1935, benefits have been tilted in favor of low earners. Because women have historically earned lower wages and often had intermittent paid work patterns, a higher percentage of pre-retirement earnings is used to calculate benefits.

Thanks to Social Security benefits, many elderly women are kept out of poverty. The Center on Budget and Policy Priorities estimates that 79,000 elderly women are lifted from poverty by their Social Security benefits. With Social Security, only about nine percent of beneficiaries are poor. Without Social Security, half of all beneficiary families would be poor.

There is much talk today about changes in Social Security. Some workers may count on Social Security as the basis for their retirement; others think they will never see a monthly check. Some people feel they will get less than their grandparents or parents.

Regardless of future Social Security changes, women workers must make as much effort as possible to set aside savings dollars for retirement, even if it means giving up spending for special items and services now. Don't count on Social Security benefits as your only source of retirement income, says Judith Urich, family resource management specialist, Cooperative Extension Service, University of Arkansas. Start now or continue to place as much as possible into a retirement fund with your employer or in an Individual Retirement Account (IRA). If your employer matches retirement savings, put in enough dollars to receive all of the match.

View retirement savings selfishly. If you must choose between a retirement or children's education fund, save for retirement. Your children may qualify for loans and scholarships. They may have to add a year or two to their education while they earn funds to attend school, but these options are not available to retirees. You are expected to pay for your own retirement lifestyle.

For more information on money management, call 246-2281.