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Prepared by the National Economic Council
Interagency Working Group on Social Security
October 27, 1998
Women and Retirement Security
TABLE OF CONTENTS
Page
EXECUTIVE SUMMARY 3-4
I. Basic Facts on Women and Retirement 5-6
II. Social Security and Women 7-11
III. Challenges for the Current System 12-14
IV. Women and Pensions 15-16
V. Conclusion 17
Endnotes 18-19
Women and Retirement Security
Executive Summary
Women Have Lower Income in Retirement than Men -- And Thus Higher
Poverty. In 1997, median income for elderly unmarried women
(widowed, divorced, separated, and never married) was $11,161,
compared with $14,769 for elderly unmarried men and $29,278 for
elderly married couples. Thus, the poverty rate for elderly women
was higher than that of men: in 1997, the poverty rate of elderly
women was 13.1 percent, compared to 7.0 percent among men. Among
unmarried elderly women, the poverty rate was significantly
higher -- about 19 percent.
Social Security Is Particularly Important to Women. Elderly
unmarried women -- including widows -- get 51 percent of their
total income from Social Security. Unmarried elderly men get 39
percent, while elderly married couples get 36 percent of their
income from Social Security. For 25 percent of unmarried women,
Social Security is their only source of income, compared to
9 percent of married couples and 20 percent of unmarried men.
Without Social Security benefits, the elderly poverty rate among
women would have been 52.2 percent and among widows would have
been 60.6 percent.
Women Face Greater Economic Challenges in Retirement. First,
women tend to live longer: a woman who is 65 years old today can
expect to live to 85, while a 65 year old man can expect to live
to 81. Second, women have lower lifetime earnings than men do. And
third, women reach retirement with smaller pensions and other
assets than men do.
The Current Social Security System Has a Number of Features That
Help Women Meet These Challenges.
Social Security provides an inflation-protected benefit that
lasts as long as you live. Since women tend to live longer
than men, they are in greater danger of outliving their other
sources of retirement income; but it is impossible to outlive
one's Social Security benefit.
The progressive benefit formula provides a higher replacement
rate for workers with lower earnings. For the median female
retiree, Social Security replaces 54 percent of average
lifetime earnings, compared with 41 percent for the median
male.
Social Security provides extra benefits to spouses with low
lifetime earnings. The Social Security spousal benefit helps
many women, even if they did not work at all outside the home.
Social Security provides benefits to elderly widows;
74 percent of elderly widows receive benefits based on the
earnings of their deceased spouse.
Social Security provides benefits to spouses of any age who
care for children under 16 if the worker (other spouse) is
retired, becomes disabled, or dies; women represent
98 percent of recipients receiving benefits as spouses with
a child in their care.
Social Security Will Continue to Be Important for Women in the
Future. As the labor force participation rates of women continue
to rise, women in the future will reach retirement with much more
substantial earnings histories than in the past. Therefore, the
percentage of women receiving benefits based solely on their own
earnings history is expected to rise from 37 percent today to 60
percent in 2060. However, this means that 40 percent of women will
continue to receive benefits based on their husband's earnings.
Poverty Rates Among Unmarried Elderly Women -- Especially Widows
Who Make up 45 Percent of All Elderly Women -- Are High. Divorced
women are a growing share of the elderly population, and their
poverty rate is higher than the overall elderly poverty rate. And
finally, poverty rates among elderly minority groups are
unacceptably high. Among Current Retirees, Women Have Much Less
Pension Coverage Than Men. Only 30 percent of all women aged 65
or older were receiving a pension in 1994 (either worker or
survivor benefits), compared to 48 percent of men.
Pensions Received by Women Are Worth Less than Those Received by
Men. Among new private sector pension annuity recipients in
1993-94, the median annual benefit for women was $4,800, or only
half of the median benefit of $9,600 received by men. And among
women approaching retirement, pension wealth is much smaller: for
example, single women had average pension wealth that was
34 percent of the single men's average.
Among Workers, Women's Pension Coverage Depends on Work Status.
Overall, fewer women workers have pensions through work,
40 percent of women compared to 44 percent of men. However, women
in full-time jobs are equally likely to have pension coverage as
men; in 1997, 50 percent of women in full-time jobs had pensions
compared to 49 percent of men. It is important to note, though,
that women are much more likely to work part-time or be out of the
labor force than men.
Women and Retirement Security
Over the course of this year, the Administration, Congress, and
other interested parties have engaged Americans in a national debate
about ways to strengthen Social Security for the 21st Century.
President Clinton and Vice President Gore attended three bipartisan
Social Security forums convened by the AARP and the Concord Coalition,
and the President and Vice President hosted a conference on private
retirement savings in July. One issue that has arisen repeatedly
throughout this process is the relationship between Social Security and
women's retirement security. The purpose of this report is to inform
the national debate by presenting some of the key facts and issues
about women and their Social Security benefits and pensions.
I. Basic Facts on Women and Retirement
Women Have Lower Income in Retirement than Men Do. In 1997,
median income for elderly unmarried women (widowed, divorced,
separated, or never married) was $11,161, compared with $14,769
for elderly unmarried men and $29,278 for elderly married couples.
Social Security Administration, Office of Policy, October 1998.
Poverty Rates Among Elderly Women Are Higher Than Rates Among Men.
The poverty rate among Americans age 65 and over has fallen from
35.2 percent in 1959 to 10.5 percent today. The poverty rate for
all elderly women was 13.1 percent in 1997, compared to a
7.0 percent rate for all elderly men. Bureau of the Census,
Poverty in the United States: 1997, September 1998. And for
unmarried elderly women, the poverty rate is even higher -- around
19 percent.
| Poverty Rates of the Female Population 65 and Over |
| by Marital Status, 1997 |
|_____________________________________________________________________|
| All Elderly | | | | |
| Women | Married | Divorced | Widowed | Never Married |
|______________|___________|____________|___________|_________________|
| | | | | |
| 13.1% | 4.6% | 22.2% | 18.0% | 20.0% |
Nearly 60 Percent of Elderly Women Are Unmarried. The poverty
rate among unmarried women is particularly important because
59 percent of elderly women are either widowed (45 percent),
divorced (7 percent), separated (2 percent), or never married
(5 percent). In contrast, only 27 percent of elderly men are
unmarried. Social Security Administration, Office of Policy,
October 1998.
Social Security Is Particularly Important to Women. Elderly
unmarried women -- including widows -- get 51 percent of their
total income from Social Security. Unmarried elderly men get
39 percent, while elderly married couples get 36 percent of their
income from Social Security. Social Security Administration,
Office of Policy, October 1998.
Most Social Security Recipients Are Women. Women represent 60
percent of all elderly Social Security recipients (women are 18.9
million of the 31.7 million aged beneficiaries).
Women Make Up Nearly Three Quarters -- 72 Percent -- of the
Increasing Number of Americans Over 85 Years Old. Because women
live longer, on average, than men, women make up 72 percent of all
beneficiaries age 85 and above. Social Security Administration,
Office of Policy, October 1998.
(Graphic Deleted In Transmission)
For Many Elderly Women, Social Security Is Their Only Source of
Income. For 25 percent of unmarried women (widowed, divorced,
separated, never married), Social Security is their only source of
income. Social Security is the only source of income for
9 percent of married couples and 20 percent of unmarried men.
Social Security Administration, Office of Policy, October 1998.
Excluding Social Security Benefits, the Poverty Rate among Elderly
Women Would Be More Than 50 Percent. In 1997, the poverty rate
among elderly women was 13.1 percent. Without Social Security
benefits it would have been 52.2 percent. For elderly widows the
poverty rate was 18.0 percent; without Social Security benefits it
would have been 60.6 percent. (For elderly men the rate is
7.0 percent, without Social Security it would be 40.7 percent.)
These calculations make the assumption that other income would not
change if Social Security were not available.
Why Women Face Greater Economic Challenges in Retirement
Women Live Longer than Men. A woman who is 65 years old today can
expect to live to 85, while a 65 year old man can expect to live
to 81. Social Security Administration, Office of the Chief
Actuary. This gap is expected to persist into the future.
Because women live longer, they depend on Social Security for more
years, and become increasingly dependent on Social Security with
age. Unmarried women between 65 and 74 years old get 43 percent
of their income from Social Security, while unmarried women 75 and
older get 55 percent of their income from Social Security.
Women Have Lower Lifetime Earnings than Men. Women have lower
lifetime earnings than men do for three reasons:
Women Who Work Are More Likely to Work Part-time. In the
third quarter of 1998, 25.8 percent of female workers worked
part-time, compared with 10.6 percent of male workers. Women
represented 67.5% of all part-time workers. Bureau of Labor
Statistics, Current Population Survey, October 1998.
Full-time Female Workers Earn Less than Full-time Male
Workers. The median earnings of full-time year-round women
workers in 1997 was $24,973, compared to $33,674 for men --
that means that the median woman earns 74 percent of the
median man's earnings. Social Security Administration, Office
of Policy, October 1998.
Women Take More Years Out of the Labor Force than Men Do.
Women are more likely to take time out of the labor force for
child raising or other care giving responsibilities. Of
workers retiring in 1996, the median woman had worked
27 years over her lifetime, while the median man had worked
39 years. Social Security Administration, Office of the Chief
Actuary, October 1998.
Women Reach Retirement with Smaller Pensions and Other Assets than
Men Do. Only 30 percent of women aged 65 or older were receiving
their own pensions in 1994 (either as a retired worker or a
survivor), compared with 48 percent of men. Section IV describes
issues related to women and pensions in more detail.
How the Current Social Security System Helps Women Meet Retirement
Challenges
The current Social Security system has a number of features that are
particularly important to women.
Social Security Provides an Inflation-Protected Benefit That Lasts
as Long as You Live. Although women receive lower average Social
Security benefits than men do, women tend to live longer than men
and to receive benefits for more years. In addition, because
women live longer, they are in greater danger of outliving their
other sources of retirement income; but it is impossible to
outlive one's Social Security benefit. Furthermore, the cost of
living protection in Social Security is more valuable the longer
a person lives; therefore, this feature of the program is
particularly valuable to women.
The Progressive Benefit Formula Provides a Higher Replacement Rate
for Workers with Lower Earnings. Since women tend to have lower
earnings than men, they receive worker benefits that are a higher
fraction of their lifetime earnings. For the median female
retiree, Social Security replaces 54 percent of average lifetime
earnings, compared with 41 percent for the median male. Social
Security Administration, Office of the Chief Actuary.
Social Security Provides Extra Benefits to Spouses with Low
Lifetime Earnings. Women are more likely than men to take time
out of the labor force for child rearing, and, on average, have
lower earnings when they work than men do. This means that the
Social Security benefit they are entitled to -- based on their own
earnings history -- can be small. But Social Security provides a
spousal benefit that helps many women, even if they did not work
at all outside the home. A spouse receives a benefit equal to the
larger of the benefit she is entitled to based on her own earnings
or one-half of the benefit received by her husband. Currently,
63 percent of female Social Security beneficiaries age 65 and over
receive benefits based on their husband's earnings record. (Only
1.2 percent of male Social Security beneficiaries receive benefits
based on their wife's earnings record). The result is women
receive more than they would based only on their own earnings
histories. While the average full benefit a women is entitled to
based on her own earnings record is only 62 percent of that of
men, the average benefit received by women is 75 percent of that
of men. The average benefit based on women's own earnings is the
average for only those women claiming benefits as retired workers.
Thus, it does not include the 37.5 percent of aged female
beneficiaries who receive benefits as wives or widows only.
Including these additional beneficiaries with full "worker"
benefits of zero in the average would reduce the average full
benefit for women as a share of the average full benefit for men
to 39 percent.
Social Security Provides Benefits for Widows. Social Security
pays an elderly widow a benefit equal to either the benefit she
receives as a worker or the benefit of her deceased spouse,
whichever is higher. Nearly three quarters -- 74 percent -- of
elderly widows receive benefits based on the earnings of their
deceased spouse.
Social Security Provides Benefits to Spouses with Young Children.
Social Security provides benefits to spouses of any age who care
for children under 16 if the worker (other spouse) is retired,
becomes disabled, or dies; women represent 98 percent of
recipients receiving benefits as spouses with a child in their
care.
Nearly One-Third of Social Security Beneficiaries Are Either
Disabled or Survivors (or Their Dependents). Nearly
one-third of Social Security's 44 million beneficiaries are
either disabled or survivors (or their dependents). This
includes 3.8 million children who receive benefits, with
1.9 million as survivors of deceased parents, 1.4 million as
children of disabled workers, and 0.4 million as children of
retired workers. Disability insurance (in case an individual
becomes disabled and can't work) and survivors' insurance are
each separately equivalent, for the average young family with
two children, to an insurance policy of about $300,000.
(Graphic Deleted In Transmission)
Will Social Security Continue to Be as Important for Women in the
Future?
As younger cohorts of women reach retirement, more and more female
beneficiaries will receive benefits based upon their own earnings
records. Nonetheless, the average benefit received by women is
expected to remain below that of men, and a significant share of women
will continue to receive benefits based on their spouse's earnings
record.
Labor Force Participation Rates among Women Have Risen
Dramatically. In the future, women will reach retirement with
much more substantial earnings histories than in the past. (Male
labor force participation has been falling due largely to earlier
retirement).
(Graphic Deleted In Transmission)
More Women Will Receive Benefits Based Solely On Their Own
Earnings History. The percentage of women receiving benefits based
solely on their own earnings history is expected to rise from
37 percent today to 60 percent in 2060. However, this means that
40 percent of women will continue to receive benefits based on
their husband's earnings. Social Security Administration, Office
of the Actuary.
Average Benefits Based On Own Earnings Record Will Rise Relative to
Men. The average full monthly benefit for retired female workers
based on their own earnings record, which is currently 62 percent
of the average for men, will rise to 67 percent in 2050. The
average benefit for retired female workers based on their own
earnings records is calculated using only those women claiming
benefits as retired workers. In the future, increased labor
market experience will be divided between increased years of work
for women who already have been receiving retired worker benefits,
and additional women becoming eligible for worker benefits. As
more women claim benefits as retired workers, many of the
additional women will have earnings below the average for women
already claiming as retired workers. This expansion of the
population used in calculating the average explains in part why
the average is forecast to rise only from 62 to 67 percent of the
average for men even as cohorts of women retire with much greater
labor market experience.
Projections Indicate That Women Will Continue to Live Longer than
Men. The difference in life expectancy at age 65 between men and
women will fall only slightly under Social Security Administration
projections from a gap of 3.6 years today to 3.4 years in 2030.
Thus, in the future, women will continue to depend on Social
Security for more years than men will. Social Security
Administration, Office of the Actuary.
III. Challenges for the Current System
Poverty Rates Remain High Among Elderly Women
Poverty Rates Among the Elderly Have Fallen Dramatically, Due
Largely to Social Security. The poverty rate among Americans age
65 and over has fallen from 35.2 percent in 1959 to 15.2 percent
in 1979 and 10.5 percent today. This compares with an overall
poverty rate of 13.3 percent.
Poverty Rates among Widowed, Divorced, and Never Married Women
Remain High. The poverty rate for all elderly women was
13.1 percent in 1997, compared to a 7.0 percent rate for all
elderly men. For both divorced and widowed women, poverty rates
are significantly higher than men: the poverty rate is
22.2 percent for divorced women and 15.0 percent for divorced men
and the poverty rate is 18.0 percent for widowed women and
11.4 percent for widowed men. Married couples had a poverty rate
of only 4.6 percent.
(Graphic Deleted In Transmission)
Widows Make Up A Large Fraction of Elderly Women. Of women 65 and
over, 45 percent of women are widowed, 43 percent are married, 7
percent are divorced, and 5 percent are never married. This means
that the high poverty rate among widows and other unmarried women
affects a large share of elderly women.
There Are Also a Substantial Number of Relatively Young Widows,
Though the Number Is Falling. Of 60-year old women, 13 percent
are widows. This percentage rises to more than one-quarter of
women aged 65 to 67. Because husbands in low-income families tend
to die at younger ages than husbands in higher-income families,
these early widows are often poor.
Divorced Women Are a Growing Share of the Elderly Population. In
1997, 7.1 percent of elderly women were divorced -- this compares
with only 2.2 percent in 1969. Among women approaching retirement
(55-64 years old), 14.4 percent were divorced in 1997. Since
divorced women have higher poverty rates than other women, this
trend could lead to higher poverty rates for women in the future.
Poverty Rates Are Higher among Elderly Blacks and Hispanics. The
poverty rate for black women aged 65 or above is 28.9 percent,
compared with 28.1 percent for Hispanic women, and 11.7 percent for
white women. The poverty rate for black men aged 65 or above is
22.2 percent, compared with 23.6 percent for Hispanic men, and
6.0 percent for white men.
(Graphic Deleted In Transmission)
Reasons Why Poverty Rates Are Higher Among Widows than Among Married
Women
The subsequent estimates are based on integrating evidence from a
number of studies, including the following: Hurd, Michael D. (1990).
"Research on the Elderly: Economic Status, Retirement, and Consumption
Savings,"Journal of Economic Literature, XXVIII(2): 565-637. Holden,
Karen (forthcoming). "Insuring Against the Consequences of Widowhood
in a Reformed Social Security System," In National Academy of Social
Insurance, Framing the Social Security Debate: Values, Politics, and
Economics, Brookings Institute. Holden, Karen C., Richard V.
Burkhauser, and Daniel A. Myers (1986). "Income Transitions at Older
Stages of Life: The Dynamics of Poverty," The Gerontologist, 26(3):
292-297.
Declines in Social Security Benefits at Widowhood. Widow benefits
vary from 50 to 67 percent of benefits for a married couple. The
official poverty thresholds imply that a widow needs 79 percent of
a couple's income to maintain her pre-widowhood consumption level.
Thus, women who are in couples just above the poverty line, can
fall below the line when they become widowed. Empirical studies
suggest that this factor can explain as much as half of the excess
in poverty among widows.
Pre-Widowhood Differences in Economic Status. Poorer husbands
typically do not live as long as richer husbands. Therefore, at a
given age, women who are widowed are more likely to have been poor
throughout their lives than are the women whose husbands have not
yet died. Empirical studies conclude that this fact explains
around one third of the difference in poverty rates between
married women and widows. Holden, Karen (forthcoming). "Insuring
Against the Consequences of Widowhood in a Reformed Social
Security System," In National Academy of Social Insurance,
Framing the Social Security Debate: Values, Politics, and
Economics, Brookings Institution. Holden, Karen C., Richard V.
Burkhauser, and Daniel A. Myers (1986). "Income Transitions at
Older Stages of Life: The Dynamics of Poverty," The Gerontologist,
26(3): 292-297.
Declines in Pension Income at Widowhood. Research using data from
the 1970s implies that roughly 15 percent of the gap in poverty
between widows and married women can be explained by the loss of
the husband's pension income. However, these data predate the
Retirement Equity Act of 1984 which was designed to encourage the
choice of a pension with survivorship rights.
Declines in Income from Other Assets at Widowhood. Some assets
may be bequeathed to people other than the widow or used for
medical or other expenses when the widow's spouse dies. Empirical
evidence suggests that the decline in other asset income is
responsible for about 10 percent of the difference in poverty
rates between widowed and married women.
Issues Concerning Benefits for Spouses who Work in the Home and Benefits
Based on Paid Employment
Spousal Benefit Ensures Adequate Retirement Income. A woman is
eligible to receive a Social Security benefit that is 50 percent
of her husband's benefit while her husband is alive, and a benefit
that is 100 percent of her husband's benefit after he dies. These
benefits reward women for work done in the home and ensure that
all Americans have an adequate retirement income, even those with
little paid employment. However, some people argue that spouse
benefits are unfair because women with many years of paid
employment can end up with benefits that are no larger than
stay-at-home moms, and others point out that two families with
identical total earnings can end up with different Social Security
benefits depending on the division of the earnings between the two
spouses.
IV. Women and Pensions
Social Security provides a key foundation for retirement security.
Pensions and individual savings provide important resources as well.
For elderly married couples, these other sources of income account for
64 percent of total income. For elderly unmarried females, these other
sources account for 49 percent of total income.
Among Current Retirees, Women Have Much Less Pension Coverage Than Men
Women Are Less Likely To Have A Pension. Only 30 percent of all
women aged 65 or older were receiving a pension in 1994 (either
worker or survivor benefits), compared to 48 percent of men.
Department of Labor, Current Population Survey, September 1994.
Lower Pension Coverage Among Private-Sector Workers. Only 31
percent of women aged 65 or older (and 55 percent of men) who had
worked in the private sector reported pension benefits, compared
to 66 percent (and 75 percent of men) of public sector retirees.
Department of Labor, Current Population Survey, September 1994.
Pensions Received by Women Are Worth Less than Those Received by
Men. Among new private sector pension annuity recipients in
1993-94, the median annual benefit for women was $4,800, or only
half of the median benefit of $9,600 received by men. The median
pre-retirement wage replacement rate of annuity benefits was
20 percent for women, compared to 30 percent for men. Among lump
sum pension recipients in 1993-94 who were age 40 and over, the
median lump sum distribution was $5,000 for women and $14,475 for
men. Department of Labor, Current Population Survey,
September 1994.
Among Women Approaching Retirement, Pension Wealth Is Much Smaller.
Single women had average pension wealth that was 34 percent of the
single men's average. Among married people, the gender gap was
even larger, with the women's average being only 25 percent of
men's. These estimates include both private and public sector
workers with and without pensions. Gustman, Alan, Olivia Mitchell,
Andrew Samwick, and Tom Steinmeier. Forthcoming. "Pension and
Social Security Wealth in the Health and Retirement Study."
Wealth, Work, and Health: Innovations in Measurement in the
Social Sciences, editors, James P. Smith and Robert Willis. Ann
Arbor, Michigan: University of Michigan Press.
401(k) Plan Take-up Rates
Women Are Less Likely To Take Up 401(k) Option When Offered.
Among private wage and salary workers offered a 401(k) plan in
1993, the overall participation rate was 62 percent for women and
70 percent for men. Department of Labor, Current Population
Survey, April 1993.
Lower Take Up Is Largely Explained By Lower Earnings. The take-up
rate is highly correlated with earnings. For example, while only
39 percent of workers earning less than $15,000 per year
participate in a 401(k) plan when offered, 90 percent of workers
earning $75,000 or more do so. Because men, on average, earn more
than women, their overall take-up rates in 401(k) plans are
higher. However, when wages are held constant the take-up rate
for women is generally equal to or greater than that of men.
Among workers earning less than $15,000 in 1993 the take-up rate
was 41 percent for women compared to 35 percent for men. For
workers earning from $30,000 to $40,000 the take-up rate was
75 percent for women and 72 percent for men. Department of Labor,
Current Population Survey, April 1993.
Among Workers, Women's Pension Coverage Depends on Work Status
Unless otherwise noted, data in this section are from the Department of
Labor, Current Population Survey, March 1998.
Overall, Fewer Women Have Pensions Through Work. For all female
workers -- both full time and part time -- 27 million (40 percent)
had a pension plan through work in 1997. For all male workers,
34 million (44 percent) had an employment based pension.
In Full-time Jobs, Women Are Equally Likely To Have Pension
Coverage. Twenty five years ago, pension coverage for women in
full-time jobs was only 70 percent of the rate for men. Today,
the coverage rates are nearly identical. In 1997, 50 percent of
women in full-time jobs had pension coverage, compared with
49 percent of men.
Coverage Is Significantly Lower for Part-time Workers. Coverage
is significantly lower for women who work part time. In 1997,
15 percent of women working part time were covered by pensions
versus 50 percent working full time.
Women Are More Likely to Work Part-time or Be Out of the Labor
Force than Men. In 1997, 75 percent of men were in the labor
force, versus 60 percent of women. In addition, over one fourth
of working women were part-time, compared with one tenth of men.
Women Who Work Part time Are Less Likely To Work For Firms With
Pension Plans. In 1997, of the 48 million women workers employed
full time, 30 million (63 percent) worked for a firm with a plan.
Among the 20 million women employed part time in 1997, only
7 million (36 percent) worked for a firm sponsoring a pension
plan.
Women Who Work Part time Are Less Likely to Participate in Pension
Plans. Among women employed by firms sponsoring pension plans,
those employed on a part-time basis are far less likely to
participate in the plan, primarily because plans often exclude
employees working less than 1,000 hours per year. Of the
30 million full-time women workers in 1997 employed with firms
with plans, 24 million (80 percent) participated in the plan. Of
the 7 million part-time women workers employed by firms with
plans, only 3 million (41 percent) participated in the plan.
Vesting Rate is Higher for Women Who Work Full time. For women
participating in a pension plan the vesting rate is higher for
those who work full time, particularly for those with less than
five years of service. In 1993, 64 percent of women with less
than five years of service who were employed full time in private
sector jobs reported that they were vested, compared to 56 percent
of women employed part time. A total of 325,000 women with less
than five-years of pension service in a part-time job reported
that they were not vested. Department of Labor, Current
Population Survey, April 1993.
Women Have Smaller Non-Pension Wealth as Well.
Median Net Worth Is Lower for Women. In 1993, the median female
householder aged 65 or older had $9,560 in financial net worth (not
including equity in own home). In comparison, the median male
householder had $12,927, and the median married couple had $44,410.
Bureau of the Census, Asset Ownership of Households: 1993, August
1995.
V. Conclusion
As discussions of Social Security reform continue, it will be
important to study the impacts of comprehensive reform proposals on
women. The design of reforms must take into account, not only the
current characteristics of elderly women, but also the changes in their
needs that are likely to come about in the 21st century as more women
with long work histories reach retirement. In addition, reforms should
consider the entire range of sources of retirement income available to
women and how Social Security can best fit into the overall retirement
security package.