NOW Warns Women About Bush's Social Security Scheme

[Guest guest]

National Organization of Women

 

 

February 3, 2005

 

 

http://www.now.org/press/02-05/02-03.html

 

 

NOW Warns Women About Bush's Social Security Scheme

 

" 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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