Nevada County Picayune and Gurdon Times Newspaper Archive

Living Well with the Carrie Connection

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

In December 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 based on their own earnings. The other women received benefits as spouses and widows, with spouses receiving average monthly benefits of $400 a month; widows, on average, $730 a month. And, because women's life expectancy exceeds men's, they receive Social Security benefits for a longer period of time.

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

Women with dependent children of a deceased worker are entitled to survivor benefits for themselves and their children while the children are school age. Children of a disabled worker are also entitled to benefits if they are school age.

With a longer life expectancy, women especially benefit from the automatic cost-of-living adjustments enacted in 1972.

Women benefit from the weighting in the Social Security benefit formula in favor of workers with lower incomes. 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, when it comes time to compute benefits, a higher percentage of pre-retirement earnings are 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. As a worker, you may hold a variety of views about the situation. Some of you may be counting on Social Security as the basis for your retirement. Some may think you will never see a monthly check. Others may feel they won't get as much as 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. Do not count on Social Security benefits as your only source of retirement income.

Regardless of your age and work history, start now or continue to place as many funds as possible into a retirement fund  with your employer or in an individual retirement account (IRA). If your employer matches retirement savings, work to put in enough dollars to receive all of the match.

Experts recommend you view retirement savings selfishly. If you must choose between a retirement or education fund for your children, save for retirement. Your children may qualify for loans and grants and scholarships to fund education. They may have to add a year or two to their education experience before they graduate while they earn the funds to attend school.

But these options, other than paid work, are not available to retirees. You are expected to pay for your own retirement lifestyle.

For more information on money management, contact the Nevada County Extension office of the University of Arkansas Cooperative Extension Service at 887-2818.

Be sure to have your pets vaccinated Saturday during the series of rabies clinics. The 4-H clubs get a portion of the $7 fee.