Congressional Panel Examines Women’s Retirement Security

The Joint Economic Committee, a bicameral congressional committee charged with studying matters relating to the United States economy, held a hearing May 21 that examined the unique issues that women face in retirement. Sen. Amy Klobuchar (D-MN), vice-chair of the committee, convened the hearing to follow up on a report issued by the committee last month which concluded that due to lower lifetime earnings, women age 65 and older collect $11,000 less in annual median income than men. The panel wanted to know what policy options should be considered in order to address this inequity. The consensus among the witnesses was that, since payroll deduction is the single most effective retirement savings vehicle, proposals that expand savings opportunities in the workplace would have the most impact on the retirement security of women. Representatives from the conservative-leaning Heritage Foundation and the liberal-leaning AARP both endorsed the concept of requiring businesses to make workplace savings, like automatic payroll deduction IRAs, available to private employees. The witnesses agreed that women generally face greater financial risk in retirement because they tend to live longer and earn less during their working careers. There was also a general recognition that women tend to move in and out of the workforce with more frequency then men, since women are typically the primary caregivers within the family unit. Andrew Remo is ASPPA’s Congressional Affairs Manager.