What every stay-at-home mom should know about Social Security and Medicare
An unmarried stay–at–home parent who has children with a partner has no protection. If she has her own work history, she may have access to a benefit of her own. But if she were a teenage or young mother and continues to have a minimal employment history, she’s at risk of becoming a very poor old lady.
A divorced woman can collect spousal benefits, so long as the marriage lasted 10 years. In such a scenario, a divorced Jane who had 10-plus years vested in a marriage can still claim the 50 percent spousal benefit, but since she’s no longer in the same household as John, unless she remarries, the Social Security income coming into her home is just $2,500 instead of the $7,500 she would have had access to had the marriage not dissolved.
For more information about your Social Security eligibility and benefits, visit the Social Security Administration website at www.ssa.gov or www.ssa.gov/women.
http://www.reallifesupportformomsblog.com/2009/05/social-security-stay-at-home-moms.html
Social Security Reform
As Ann Crittenden, author of The Price of Motherhood, warns, “Many are skeptical now that Social Security will exist when they retire. On this they are wrong -- it is, and will remain the single greatest source of income for older American women.” It is more likely, however, that there will be major Social Security reform during your lifetime.
http://www.mothersmovement.org/features/soc_security.htm
An unmarried stay–at–home parent who has children with a partner has no protection. If she has her own work history, she may have access to a benefit of her own. But if she were a teenage or young mother and continues to have a minimal employment history, she’s at risk of becoming a very poor old lady.
Here’s the rub: A person’s Social Security benefit—which is the value of the monthly check she will receive in old age—is based on having a total of 35 years of paid employment. For each year worked, a certain number of “credits” are provided. You need to have 40 credits to be eligible for your own Social Security retirement and Medicare health insurance benefits. (At the current four credit maximum per year, that requires at least 10 years of employment.)
THE 50 PERCENT SOLUTION For MARRIED women:
In lieu of recognizing that stay–at–home parenting is work, the government allows a married woman to collect off of her spouse’s work history instead, if receiving 50 percent of his benefit amount calculates to being more than 100 percent of hers. (And this scenario is also true in the other direction, with the husband collecting based on his wife’s earnings.) So if a woman and her spouse make it to retirement together and an anniversary of more than a decade of marriage, she can collect either her benefit or an amount that’s half of his. For example: If John gets $5,000 a month, Jane gets $2,500, so as a couple living together they bring in $7,500 monthly.A divorced woman can collect spousal benefits, so long as the marriage lasted 10 years. In such a scenario, a divorced Jane who had 10-plus years vested in a marriage can still claim the 50 percent spousal benefit, but since she’s no longer in the same household as John, unless she remarries, the Social Security income coming into her home is just $2,500 instead of the $7,500 she would have had access to had the marriage not dissolved.
For more information about your Social Security eligibility and benefits, visit the Social Security Administration website at www.ssa.gov or www.ssa.gov/women.
http://www.reallifesupportformomsblog.com/2009/05/social-security-stay-at-home-moms.html
Social Security Reform
As Ann Crittenden, author of The Price of Motherhood, warns, “Many are skeptical now that Social Security will exist when they retire. On this they are wrong -- it is, and will remain the single greatest source of income for older American women.” It is more likely, however, that there will be major Social Security reform during your lifetime.
http://www.mothersmovement.org/features/soc_security.htm
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