Women need to understand their Social Security benefit…but that’s not all!
Reading Time: 2 MinutesLast Updated: November 3, 2023
One of the biggest mistakes people make is simply not taking the time or waiting too long to understand how the retirement system works. If you’re worried that you won’t have enough money to last throughout a longer lifetime, take action by doing something about it. According to a 2016 survey, only 40 percent of workers have gotten an estimate of their Social Security benefit amount and only 17 percent have a written financial plan.
While all Americans need to plan for their financial futures, it is especially important for women. Women face unique financial challenges like longer life spans, the fact that we traditionally earn less than men, and differing employment patterns from men. Women are more likely to work part-time and spend time out of the paid workforce to care for loved ones. These all usually lower women’s Social Security benefits and overall savings.
Women need to know the amount of their future benefits, and make sure they know the best time to retire. Married women need to know how widowhood and divorce affect their benefits. An easy way to do this is to sign up for a my Social Security account, and use your Social Security Statement as a planning tool.
Social Security provides the foundation, but you need to have other sources of income such as a work-based retirement savings plan. What about personal IRAs or other savings/investment accounts? If you are married, don’t forget to find out what retirement accounts your spouse has as well. The Women’s Institute for a Secure Retirement (WISER) has a worksheet Get Your Ducks in a Row to help you get started.
Do you know all the benefits you may be eligible for through your employer? A typical benefits package is often worth up to 25 percent of an employee’s income, and can include health, retirement, disability, life, long-term care, and flexible spending accounts. Read WISER’s brochure, 20 Ways to Take Advantage of Your Company Benefits Plan to learn more.
Finally, with tax season underway, now is the perfect time to get started. Grab those W2 forms to see how much money you are actually living off of each year, and then figure out how you, with Social Security benefits and other resources, can maintain financial security throughout your life’s journey. For additional resources, visit www.wiserwomen.org and Social Security’s People Like Me – Women’s page.
Cindy Hounsell chounsell@wiserwomen.org, is the President of the Washington D.C.- based Women’s Institute for a Secure Retirement (WISER,) a nonprofit organization to improve opportunities for women to secure retirement income and to educate the public about the inequities affecting women in retirement.
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Tags: Disability, retirement, Social Security benefits
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A B.
My question is why has social security notcher able release disability funds that were paid by employees and employers.? Once a worker becomes disabled they have a right to request their assistance as needed It should not be left up to states’ or politicians to decide if they should be able to do so.
Hospitals &.
Sanders, Tony J. Social Security Amendments of January 1, 2017 HA-1-1-17 http://www.title24uscode.org/ss2017.htm
Warren, Elizabeth; Tyagi, Amelia Warren. The Two-Income Trap: Why Middle-Class Mothers and Fathers are Going Broke. Basic Books. Perseus Books Group. New York. 2003
The average two-income family earns far more today than did the single-breadwinner family of a generation ago. Yet, once they pay the mortgage, the car payments, the taxes the health insurance, and the day-care bills, today’s dual-income families have less discretionary income and less money to save for a rainy day. If current trends persist, more than one of every six single mothers will go bankrupt by the end of the decade. Over the past twenty years the number of single mothers in bankruptcy has increased more than 600 percent. Mothers are 35 percent more likely than childless homeowners to lose their homes, three times more likely than men without children to go bankrupt, and seven times more likely to head up the family after a divorce. Nearly nine out of ten families with children cite just three reasons for their bankruptcies: job loss, family breakup and medical problems. All the other reasons combined – bad investment, crime victim, credit card overspending, natural disaster, other or no explanation – account for just 13 percent of families in bankruptcy. In the past twenty-five years the chances that a worker will suffer an involuntary job loss have increased by 28 percent since the 1970s. It is estimated that in a single year, roughly 6.3 percent of dual-income families -one out of every sixteen – will receive a pink slip. That means that a family today with both husband and wife in the workforce is approximately two and a half times more likely to face a job loss than a single-income family of a generation ago. Two-income families are more likely to file for bankruptcy than their one-income counterparts. Moreover, dual-income families who have filed for bankruptcy are also more likely to cite job loss or injury as the reason for their financial collapse. In 2001 more than one million families filed for bankruptcy in the wake of a job loss, business failure, disability or other form of income interruption. One in eleven single parents are more than 60 days past due on their bills (compared with one in thirty married couples with children). Single mothers are also more likely to lose their homes. Single parents who had purchased a home in the 1980s with a mortgage backed by the Federal Housing Authority (FHA) more than one in ten had lost their home by 2002 because of foreclosure. More than 200,000 single mothers go bankrupt each year. The number of single mothers going broke has increased moe than 600 percent since the early 1980s. If current trends persist, more than one of every six single others will go bankrupt by the end of the decade. Every year more than 300,000 blacks and Hispanic homeowners file for bankruptcy in a desperate attempt to hold on to their homes. Hispanic homeowners are nearly three times more likely than white homeowners to file for bankruptcy, and black homeowners are more than six times more likely. 8, 9, 13, 81, 82, 83, 105, 159
During the 1970s a single earner couple had about the same chances of getting divorced as a dual-income couple. By the 1990s a working wife was 40 percent more likely to divorce than her stay-at-home counterpart. Over the past twenty-five years the number of children whose mothers have never married has increased eightfold. The number of unmarried couples rearing children has increased eightfold. Approximately four in ten children will spend some time in a cohabiting family before they turn sixteen. Since the 1970s involuntary job loss has increased 150%, wage-earner misses work due to illness or disability up 100%, divorce up 40%, lacking health insurance up 49%, wage-earner misses work to care for sick child or elderly family member up 1,000%. A generation ago Mom’s earnings were used to cover treats and extras. Baks and loan companies routinely ignored women’s earnings in calculating whether to approve a mortgage. In 1975 Congress passed an important law with far-reaching consequences for family housing choice. The Equal Credit Opportunity Act stipulated that lenders could no longer ignore a wife’s income when judging whether a family earned enough for a mortgage. By the early 1980s women’s participation in the labor force had become a significant factor in whether a married couple could buy a home. As recently as 1976s a married mother was more than twice a likely to stay home with her children as to work full-time. By 2000 those figures had almost reversed. The modern married mother is now nearly twice as likely to have a full-time job as to stay home. In 1965 only 21 percent of working women were back at their jobs within 6 months of giving birth to their first child. Today, that figure is higher than 70 percent. A modern other with a three-month old child as likely to be working outside the home than was a 1960s woman with a five-year-old child. Since the 1960s women’s wages have grown ten times faster than men’s. Today employed women with children earn just 4 percent less than their childless sisters. 85, 86, 88, 29, 30, 102
It wasn’t until the 1980s that Congress passed a series of laws that guaranteed women all around the country the opportunity to garnish their ex-husband’s paychecks. Congress ordered uniform support guidelines in 1984. The penalties for nonpayment have stiffened. In some states a man who falls behind on his child support payments stands to lose his driver’s license or his work permit (such as a contractor’s license). He may even be thrown in jail. Today, federal and state governments spend more than $3 billion on child support enforcement, compared with less than $400 million in the mid-1970s. Since 1976, the proportion of women receiving child support has increased 17 percent for divorced mothers and 300 percent for never-married mothers. According to one survey, nonresident fathers who earned more than 95 percent of their court-ordered child support. Among fathers who were steadily employed, including low wage workers, 80 percent of their wives reported receiving full payment. About two-thirds of nonpayers do not pay because they are not legally required to pay; they have no paternity established or they are separated bu not yet divorced. Nonpayers are far more likely to have low incomes and to live in poverty. According to one estimate, six out of ten nonresident fathers who fail to pay child support either have low incomes, are substance abusers, or have outstanding obligations to support new children. According to one study of men who experienced a sharp drop in earnings, only 4 percent were able to persuade the courts to lower their child support payments. 103, 116, 117
A recent study showed that the average police officer could not afford a median priced home on the officer’s income. The same is true for elementary school teachers. Without a working spouse the family of a police officer or teacher is forced to rent an apartment or buy in a marginal neighborhood. In the 1980s the mortgage lending industry was deregulated and the average family could find plenty of banks willing to issue them larger mortgages relative to their incomes. Subprime lending ensnares people who, in a regulated market, would have had access to lower cost mortgages. Researchers have concluded that at least 40 percent of those who were sold ruinous subprime mortgages by Citibank would have qualified for prime-rate loans. In 2002 Citibank’s subprime lending subsidiary was prosecuted for deceptive marketing practices and the company paid $240 million to settle the case, at the time the largest settlement of its kind. In finances long term commitments are the most dangerous kind. Sometimes they are unavoidable, such as when you buy a home or go to college. But whenever possible, go for a shorter commitment, since that will give you what you most need in times of trouble – flexibility. So, for example, choose a 36 month car loan instead of a 60 month commitment. If that drive the payment up too high, then heed the warning, you cannot afford this car and you should opt for something cheaper. Once you pay off this car, hang on to it for an extra year or two and keep making payments to yourself. After two or three times around, you can pay for your car in advance, giving yourself that much more flexibility in your budget. 31, 135, 166
Bill B.
Have you ever thought about writing a manuscript?
JAMES J.
WHEN YOU REACH 65 YOU WILL BE SWITCHED OVER TO SOCIAL SECURITY. YOU WILL NOT HAVE TO DO ANYTHING, YOUR BENEFITS WILL REMAIN THE SAME.
Ray F.
Social Security disability benefits paid under the Social Security Disability Insurance (SSDI) program, automatically convert to retirement benefits when individuals attain their Full Retirement Age. Full retirement age (also called “normal retirement age”) had been 65 for many years. However, beginning with people born in 1938 or later, that age gradually increases until it reaches 67 for people born after 1959. Generally, the benefit amount remains the same when we convert your disability benefits to retirement benefits. Disability (SSDI) payments are established at the highest rate possible, based on the individual’s earnings record.
Maria N.
Many people do not know how retirement from social security works, they need to educate themselves and take care of their own needs, we as women put the burden on other people shoulders because we are care givers and expect someone else to take care of our financial needs when we get older. Wake up!!! when it comes to money you are on your own.
N S.
Not true. I am a strong woman and I do not expect anyone else, especially the government, to take care of my financial needs. You can be a care giver and take care of yourself.
Carol J.
I am currently receiving SS Disability benefits and need to know if I am required to apply for regular SS benefits, and if so what age would I apply for and would my benefits change when I reach age 62 or 65? Or does this happen at a certain age without me applying. Also, will my benefits be reduced at that time? Thank you.
Ann C.
Hi, Carol. Thanks for your questions. Social Security disability benefits paid under the Social Security Disability Insurance (SSDI) program, automatically convert to retirement benefits when individuals attain their Full Retirement Age. Full retirement age (also called “normal retirement age”) had been 65 for many years. However, beginning with people born in 1938 or later, that age gradually increases until it reaches 67 for people born after 1959. Generally, the benefit amount remains the same when we convert your disability benefits to retirement benefits. Disability (SSDI) payments are established at the highest rate possible, based on your earnings record. We hope you find this helpful.
surinder k.
Hi,
I have not got any social security benefits niether from Florida State and nor from Taxas Workfoce Commission,it is really a misserable because life is not mooving without money.kindly do for me.
sincerely you
AKA
Contact the agencies involved.
N S.
Are you talking about Social Security benefits or Workers’ Compensation benefits?
Ray F.
Hi! If you are referring to a claim for Social Security benefits, please call our toll free number at 1-800-772-1213, for follow up and further assistance. Representatives at our toll free number are available Monday through Friday, between 7 a.m. and 7 p.m. Thanks.
Phyllis C.
How come clerks not abreast of “offset’ for government retirees? Both NJ &FL cannot give me answers. My husband just passed, he had state pension and social security. I have government pension and social security with offset (I receive $84 social security after Part B paid. Will I now receive something from my husband? One woman said yes and no offset. Is this true? Husband passed Jan. 25, haven’t heard anything back from them.
John
Call the toll free number 1800-772 1213. This blog provides general information and does not give advice for individual situations.
Ann C.
Hi, Phyllis. A pension based on work that is not covered by Social Security (for example, Federal civil service and some State or local government agencies, such as police officers and some teachers) may cause the amount of your Social Security benefit to be reduced. Your benefit can be reduced based on one of two provisions: The Government Pension Offset and the Windfall Elimination Provision. To learn more, please visit our webpage, Information for Government Employees. For your security, we do not have access to information about your account. We do ask that members in our Blog community continue to work with our local offices with questions about their specific case. Thanks.
Ray F.
We are sorry to hear about your loss Phyllis. A pension based on work that is not covered by Social Security (for example, Federal civil service and some State or local government agencies) may cause the amount of your Social Security benefit to be reduced. Your benefits can be reduced based on one of two provisions. Your own Social Security benefit can be reduced based on the Windfall Elimination Provision. Your widow’s benefits under Social Security may be affected by the Government Pension Offset. You should receive an official notice soon. For follow up and further assistance, please call our toll free number at 1-800-772-1213. Representatives at our toll free number are available Monday through Friday, between 7 a.m. and 7 p.m. Thanks.
Cathy
Look into maximum amounts social security allows per household. It only allows you to receive so much. I don’t know if it pertains to your situation but I got much less than my full disability amount once I began receiving other benefits.
Lesly F.
Is that true about social security benefits.mrs
LaQuita P.
I’m getting my social security disability check will I get a retirement benefit check also.Yours Truly,Ms.L.Price
B. R.
When they switched me over from disability payments to retirement at retirement age, it was the same exact amount … just the same check amount. They did, however, mess me up with my Medicare. For some reason, they changed my Medicare account, too, or, at least, that’s what they said happened. My bills were refused by Medicare for a month or two and had to be re-filed later. Just keep an eye out for what is happening.
bettyg
same with me; you get a letter advising you are no longer received SSDI benefits.
you are now of age for retirement … SAME $$.
John
No, you are converted to retirement and the amount stays the same.
JAMES J.
at 65 your disability will switch over to social security. your check will not change, you will get the same amount.
Ann C.
Hi, LaQuita. Thanks for your question. When you reach full retirement age, we will automatically convert your disability benefits to retirement benefits, but the amount remains the same. Starting the month you reach retirement age, you will get benefits with no limit on your earnings. For more information, please visit our Frequently Asked Questions. We hope this helps.
Bill B.
No, once you reach the age of 65 it becomes regular social security and just the name changes.
Alena J.
Thats funny!! Haha hee hee….
Jo
No, disability SS is early Social Security at the rate you would get at 65, 66 or 67. Depending on your year of birth. Only other supplement you get maybe SSI depending on how much income you get monthly/yearly. Retirement benefit is for those with no disability.