Social Security vital to many older ladies

The PPI report, which is online at www.aarp.org, found that Social Security is an especially important income source for older women because they are less likely to have other retirement income vehicles such as pensions and savings. Moreover, three key features of the Social Security program – progressiveness of the benefit formula, guaranteed benefits for life and inflation-adjusted benefits -- are particularly beneficial to women.
Social Security was set up to help lifetime earners. It was, however, created in an era that was focused on full-time breadwinners and back then, that was mainly men.
Times have changed, although perhaps not as much as you may think. To this day, women earn less on average than men. In 2010, women’s earnings for all occupations were 81 percent of men’s earnings. Also, women are more likely to work part- time and have income earning gaps during their childbearing and child rearing years. That means lower lifetime earnings for women.
The good news is that Social Security takes those factors into account. Social Security replaces a higher share of average lifetime earnings for low earners than for higher earners. The fact that benefits are guaranteed for life and adjusted to keep pace with inflation (theoretically) provides some comfort to women because on average, they live longer than men.
In 2010, 17 million women received retired worker benefits, 2.3 million received spouse benefits and 4.4 million received survivor benefits.
Married women may be eligible to receive spouse benefits based on their husband’s earnings. The wife of a covered worker who claims Social Security at her full retirement age can receive a benefit equal to 50 percent of her husband’s full retirement benefit; a wife who claims earlier (as early as age 62) receives reduced benefits. Generally, divorced women who were married for at least 10 years and have not remarried also can receive spousal benefits. Women who remain single do not fare as well.
The PPI report shows just how important Social Security is to America’s women. More than a quarter of older women rely on Social Security for nearly all of their household income.
Further statistics show that 38 percent of older women were kept above the poverty level because they receive Social Security benefits – although more women are likely to live in poverty than older men.
As AARP holds its You’ve Earned a Say community listening sessions across Rhode Island and throughout the nation, people are expressing their views on the future of Social Security as well as Medicare.
Women of all ages should be taking part in the conversation, which is about the future of people as well as those two federal programs.
Social Security, as you surely know, is what allows many older Americans to get by; especially women.


Kathleen S. Connell is state director of AARP-Rhode Island. She can be contacted at kcon-nell@aarp.org.