Social Security Reform: What's at Stake for Women
Feature Story by Menna Demessie - 6/25/2002
Women’s Policy Inc hosted a bipartisan discussion at the U.S. House of Representatives June 19 entitled "Social Security and Women: Future Challenges and Opportunities" to promote awareness regarding women’s stake in Social Security reform. The group, affiliated with George Washington University, tracks federal legislation on a broad range of issues that affect women and their families.President Bush’s Commission to Strengthen Social Security proposal, which promotes privatization, or investing Social Security funds in the stock market, garnered the most debate. Women’s dependency on Social Security benefits as a primary source of income, combined with their lower average lifetime earnings, not only means there is less money to invest, but no guarantee should the money disappear in the fickle stock market. In addition, women’s longer average lifespan exacerbates these concerns.
"You cannot save what you don’t earn. Private accounts do not offer COLA’s (Cost of Living Adjustments). Women earn 73% of what men earn. Privatizing is not the answer, we should work to improve the system that already exists and stop robbing it. America’s retirement savings needs to better respond to the reality of women’s lives," said Rep. Diane Watson (D-Calif.).
Other women members of Congress emphasized the importance of public understanding regarding other social security benefits such as disability and survivor support. U.S. Rep. Jennifer Dunn (R-WA) stressed the inability of social security to accommodate divorced women, who are only entitled to spousal benefits after 10 years of marriage. However, the average length of marriage that ends in divorce is seven years.
Special Assistant to the President for Economic Policy Charles Blahous’s argued that opponents of privatization offer no alternative, and are only being critical because it is an election year. In response, Rep. Rosa DeLauro (D-CT) said, "Privatization is unfair and I think it wrong. It is not about scare tactics, it’s about what people have to look forward to at the end of the working year."
