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The Economic Consequences of Widowhood on Elderly Women in the United States and Germany

^a Social Security Administration, Washington, DC

Correspondence: Thomas L. Hungerford, Office of Retirement Policy, Social Security Administration, 9th Floor ITC Building, 500 E Street, SW, Washington, DC 20254. E-mail: thomas.hungerford{at}ssa.gov.

Laurence G. Branch, PhD

Purpose: Different countries have different goals for social welfare policy. Consequently, it is reasonable to expect different outcomes after certain events. This article examines changes in the economic well-being of elderly women at widowhood in the United States and Germany. Design and Methods: Longitudinal data from the U.S. Panel Study of Income Dynamics and the German Socioeconomic Panel were used to prepare a sample of elderly widows. Economic well-being the year before the husband's death was compared with economic well-being the year after the husband's death. Results: Although the prevalence of poverty is different in the two countries, most widows in both countries experienced a decline in living standards, and many actually fell into poverty at widowhood. A fall in Social Security and pension income was the largest contributor to the fall in living standards. Implications: The retirement income system in both countries seems to be adequate for married couples but appears to fail for widows.

Key Words: Widowhood • Social Security • Economic well-being

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