The economic consequences of widowhood on elderly women in the United States and Germany.

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 wellbeing 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.