I believe individual accounts are part of the solution. During the hearing, expert witnesses discussed why women have different needs under Social Security and why they could benefit from individual accounts. Consequently, women depend on income from Social Security for more years in retirement than do men. The trend of ever-increasing life expectancies appears destined to continue well into the future. Women are more likely to be out of the workforce to raise children or care for elderly parents.
Women earn less money than men.
With lower earnings, they earn lower benefits under Social Security. Grassley said individual accounts could benefit women by giving them more control over their government-collected retirement assets. The accounts would be owned by the individual, not the government. Individuals could direct how the money in their accounts would be invested among a small number of different options, Grassley said. For example, under the current system, two families with the same household income may receive startlingly different retirement benefits.