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Self-sufficient Social Security

The headline in our wealth manager’s newsletter read: “Almost Nine Out of Ten Women Qualify for Social Security on Their Own.” I wondered, “Why is this newsletter worthy?”

Milestone

More women enter the workforce every year. Since most people have to earn 40 credits to retire, you have to work (and pay into Social Security) for at least 10 years to qualify for retirement benefits. The fact that the percentage of women ages 62 to 64 who meet these requirements based on their own work records has risen 24% since 1980, means women are staying in the workforce long enough to earn their own benefits.

How it Works

There are three types of Social Security benefits: retirement, disability, and survivors. In a nutshell, when you are employed by an organization where the Social Security Administration (SSA) takes a percentage of your paycheck in taxes, it uses those wages to fund a program that distributes payments to retirees, the disabled, and their families who qualify. The assumption is eventually most Americans will qualify for Social Security and draw money from it. We’ll stick to retirement benefits for this conversation. To qualify for SSA retirement funds, you must reach your full retirement age, accumulate enough credits, and apply for it. Here is a good explanation of Social Security benefits.

What Women Should Know

Almost 55% of people receiving Social Security retirement benefits are women. Not only do women earn their own benefits, they can qualify for a spouse’s benefits. This is significant because women tend to live longer and earn less than their spouses. Social Security will not be as much money as your current paycheck. You can expect it to be about 40% of what you’re currently earning. Social Security should only be part of your retirement plan. You can use it as a foundation to build on. If your employer offers a 401(k) (or a 403(b)) plan, you should participate. If your employer contributes to it as well as invests a percentage of your paycheck for you, contribute at least as much as they do and increase your percentage beyond their contribution every year. It would also be wise to open an Individual Retirement Account (IRA). The current rule of thumb is saving 15% of your income for retirement. Three sources of retirement income seems like overkill, but a quick Google search indicates a nest egg of $1,000,000 will only last 19 years in retirement. Social Security benefits last until you die, but you won’t receive the same amount throughout your retirement. Payments are made monthly and usually by direct deposit. Every year, the SSA considers adjusting retirees’ payments for inflation and decides whether or not it will increase them to reflect the cost of living. The SSA has explanations for how changing your name, becoming disabled, or divorced or widowed affects your social security benefits. You can read about it here.

The increase in women who earn their own Social Security benefits means more people are paying into the program. It also means more people intend to be paid from it. Could this be an incentive to prompt thinking on how we can empower more women to stay in the workforce so Social Security can sustain funds?

What do you think? Please share your opinion in the comments section.

I Wish I’d Known

“Mom had made sure we were exposed to ideas and information that were not available to her as a young woman.” Brene Brown, Rising Strong

When I ran across that quote, it reminded me there are umpteen things I want my daughter to know about work because she’s a woman. Here are three.

Assertive and Likable

If you intend to be a leader, that violates current gender stereotypes. Research shows when a woman’s behavior violates gender stereotypes, it’s harder for her to advance in the organization. At my first full-time job, a male coworker chuckled at me, “Stop working so hard. You’re making the rest of us look bad.” The very behavior that could put me on a leadership path, made him uncomfortable. I navigated this by asking for help and including others (particularly male colleagues) when making decisions. To get promoted, I had to be both assertive and likable and that is not easy. Unfortunately, the business world hasn’t changed much.

Work-life Balance

If your job is building dependent (e.g., hospital, school, grocery), you have a better shot at work-life balance because you leave your work at the building. But you may be putting in more hours there keeping up with the demands of COVID-19, particularly if you work a frontline job. The pandemic revealed plenty of jobs aren’t tied to a specific building and can be done any time of day, blurring the line between work and home. As a woman, the work-life balancing act is more difficult thanks to stereotypical gender roles. The term work-life balance has a negative connotation, as if work isn’t part of your life. I suggest you strive for work-life integration. Pre-pandemic, this worked particularly well for those who have control over how and where they spend their workday. COVID-19 forced more employers to not only allow employees to work remotely, but also consider the possibility of making remote work a permanent option. Consequently, you have more opportunity to shape your day now than ever before and for the foreseeable future. It’s easy to go overboard and work too much, and there will be times when work is slow and life demands more of your attention. But if you create a schedule, coordinate with your partner and kids, unplug regularly to intentionally rest, work-life integration is more practical than work-life balance.

Own Your Success

In school, you work hard and get noticed. That doesn’t happen in the workforce. You have to promote yourself. First, internalize the fact you earned the right to recognition. We tend to remember our failures better than our successes, so keep a running list of your wins (e.g., attained goals set in your last performance review, clients you’ve landed, the number of clicks on the page you created for the company’s website). Second, accept compliments. Women are famous for diluting our achievements. We attribute our success to luck or we overshare credit. You work hard; accept recognition for it. This is not bragging. Just say thank you. Express gratitude for the contributions of coworkers who helped you, but don’t exaggerate their efforts and underestimate yours.

What advice do you give your daughters about work? Please share in the comments section.

Tick Tock Your Life is a Clock

You don’t have to make sweeping changes to the way you work to be more productive. COVID-19 has already brought sweeping changes to the way you work. Whether you are back in the office or still remote, little tweaks to your processes can have big results by the end of the week.

Concentrate

Multitasking is a myth. Even if you only spend five minutes concentrating on one task, you’ll get it done faster. You can’t prevent interruptions, but you can minimize distractions like silencing your phone and putting it out of reach so you can’t hear the social media notifications going off. Be proactive and don’t instantly react. Let the phone call go to voicemail. Let the email that just arrived sit in the inbox. Refuse the ad hoc meeting. Turn off instant message. Mute the computer. Are you a procrastinator? If your manager does not do regular accountability meetings, assign yourself project deadlines and write up your own weekly status reports. Take the last half hour of the day to determine what can be put off until tomorrow. The list should be both specific and realistic. For example: achieving inbox zero is not an acceptable task. Return Boss’s email regarding corporate holiday gifts, is. Calendar tasks that are important, but not urgent for times in your day you can count on having a quiet space in which to work.

Control

Most of us are really bad at estimating the passage of time. Keep track of how much you actually spend on tasks, including checking social media. An app may help. If the task is something you can do in less than five minutes, do it. Is there a task you’ve been dreading? Do it first and get it over with. When you receive a meeting request, ask yourself if your presence is necessary. Can you request an email summary or delegate someone else to attend? Speaking of email, most of it is someone adding a task to our list. Check your inbox at regular intervals. (Because you’ve muted the notification, right?) As soon as you log on, reply to every message that takes no more than two minutes to answer. If the message takes longer, write a rough draft, but don’t send it. A couple of hours later, refine it, and send it if you’re satisfied, then, repeat the process with the emails that arrived during that time. Schedule tasks according to when you feel most alert. Do deep work when you have the most brain power and routine tasks when you have the least.Take a break. Get up and stretch, walk around the block, or check social media. Change your scenery. Going outside or even just to a different room can boost your productivity.

You will get distracted and you will get mad at yourself for it. Forgive yourself and move on. Don’t overthink. Complete is greater than perfect. Do it. Leave it. Return to it. When all you’re changing are nitpicky details, submit it.

What are your productivity tips? Please share them in the comments section.