NOW Warns Women About Bush's Social Security Scheme

February 3, 2005

"As he did in the State of the Union speech, George W. Bush misleads the public on Social Security at virtually every turn," said NOW President Kim Gandy. "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 claims that Social Security will be completely 'bankrupt' by the year 2042. This statement is flat-out false and Bush's assertion that private accounts will create a secure retirement has no basis in sound forecasting."

On average, women in the U.S. make 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 years of retirement life. In addition, many insurance companies that sell annuities unfairly discriminate against women by charging them more (or paying lower benefits) because they live longer on average than men! And Bush never addresses the fact that Social Security is also a disability insurance and life insurance (survivors' benefits) program, which would be irreparably weakened by draining funds from the insurance pool—and those life-sustaining benefits would be reduced without recourse.

"Women, particularly women of color who earn considerably less over their lifetimes, will be put at great risk by reducing their guaranteed benefits and then subjecting their small investments to market forces," said Gandy. "Under a privatization plan, the working poor will lose the compensatory increased Social Security benefit paid to lifetime low-income earners and they will lose the guaranteed, inflation-proofed benefit."

Gandy 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."

"Women do not need reckless assertions about how Wall Street will do a better job than a system that has provided security to millions over the last 70 years. With only minor adjustments we can improve benefits and address the solvency problem far into the next century. President Bush is playing a costly game of bait and switch in order to divert billions of dollars in fees to investment firms. Women's rights advocates and our allies are determined to stop him."

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