NOW Warns Women About President's Social Security Scheme
Compiled by Arlene Ketchum
In stating NOW's position on George Bush's plan to revamp Social Security, President Kim Gandy claims that the President is misleading the public on Social Security at every turn.
"Women, regardless of age, have the most to lose under Bush's privatization scheme, and they must take the time to understand the fundamental flaws and deceptions in the president's analysis of the system… Bush's assertion that private accounts will create a secure retirement has no basis in sound forecasting," Gandy says.
Women in the US make, on average less than $30,000 a year. Women earning such low wages will not be able to contribute enough into a private account to purchase an annuity that will sustain them over an expected 20-year retirement. In addition, women are often paid lower benefits from annuities because, actuarially, they live longer than men. Furthermore, under a privatization plan, the working poor will lose the compensatory increased Social Security benefit paid to lifetime low-income earners and lose the guaranteed inflation-proofed benefit.
Gandy further added, "Make no mistake about it, privatization of Social Security will disproportionately hurt women-many of whom are already at a disadvantage because of pay discrimination, time out of the paid workforce to care for families, insufficient or non-existent pensions and meager savings."
President Bush, Gandy adds, is playing a game of bait and switch in order to divert billions of dollars in fees to investment firms.
Social Security is also a disability and life insurance program. Privatization puts at risk disabled women, widows, single and divorced women and the children of a working parent who dies or becomes disabled.
According to Gandy, this is the bottom line: If you're a woman, you're being asked to take your money out of a system that offers guaranteed retirement, disability and survivor benefits, and move it into a privatized system that will discriminate against you in the amount it pays out because you are female.
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