As a post-baby-boomer generation, we have all more or less come to accept that we are not likely to reap many (if any) social security benefits from the decades we will have paid into the system. Well, it gets even worse for women who work and are married.
In my previous post I mentioned the study by Edward J. McCaffery of the National Center for Policy Analysis discussing “Women and Taxes”. I had previously focused on income taxes, and now it is time to turn the spotlight to our Social Security ‘contributions.’
The system is set up so each spouse is automatically entitled to benefits based upon the other spouse’s benefits. What does that mean?
Say a woman elects to collect benefits based on her husband’s contributions rather than her own, the US government gets to collect her Social Security tax without paying any additional benefit.
But that’s not all!
Thanks for the kick in the pants, Uncle Sam.