Social Security Facts

This article by National Committee to Preserve Social Security and Medical Care provides an overview of Social Security, including its specific importance to women. Women live longer than men and may outlive their savings and/or pensions. Because women typically earn less than men and are more likely to have low-wage and part-time jobs, it can be difficult to save for retirement. Women’s savings are also affected by caregiving responsibilities. While caregiving, women may spend years out of the workforce. Because women often earn lower wages and spend more time outside of the workforce, they are less likely to have pensions.

Social Security offers women workers some additional resources, though it's important to realize that women typically receive fewer Social Security benefits than men. That's because from the start, social security took male wage workers as the norm. It does not account for the gender pay gap, and it doesn't recognize the unpaid work of caregiving. In its structure and application, social security mirrors society's sexism.

Congress passed the Social Security Act of 1935 during the Great Depression, to provide workers with an income after they retired.  Almost forty percent of older adults today would live in poverty without Social Security.

When we work and pay our payroll taxes, we contribute to Social Security and earn credits. Adjustments are made for low-income workers, which can be especially helpful for women who earn less than men. A worker must have earned at least forty Social Security credits to qualify for benefits, which typically takes ten years of full-time work.

Currently, The Social Security Trust Fund makes up the gap between what is collected through payroll taxes and the costs of Social Security. Without policy change, the Trust Fund is projected to run out of funds by 2035.

American voters widely support Social Security, and legislators have introduced several bills in Congress to extend the Social Security Trust Fund. One bill would adjust the consumer price index to address inflation more effectively. Other legislative efforts hope to increase the benefit for everyone and to increase the Special Minimum Benefit for low-income people. Yet another bill would eliminate the cap on how much people can be taxed for Social Security.

Unlike private retirement plans, Social Security has broader objectives than only providing retirement benefits. Social Security was also established to protect our most vulnerable citizens from falling into poverty, raise the standard of living for lower-income workers, and provide financial security to spouses and dependent children in the event of a worker’s disability or death.

SOURCE: National Committee to Preserve Social Security and Medicare • LAST UPDATED: October 24, 2024