Race Day Live The gender pay gap has improved over the years, but it still exists. In 2023, women earned about 83.6% of what men made, according to the Bureau of Labor Statistics.
This wage gap affects not only their current financial situation but also their future retirement benefits. Since Social Security benefits are based on lifetime earnings, women often end up receiving lower monthly payments.
Why Do Women Get Less From Social Security?
There are several reasons why women tend to receive smaller Social Security checks:
1. Lower Lifetime Earnings
Historically, women have earned less than men. In 1960, women made only 61 cents for every dollar men earned. Though this has improved, lower wages over a lifetime mean smaller Social Security benefits.
2. Career Breaks for Family Care
Many women take time off from work to care for children or aging relatives. These career breaks result in fewer working years, which lowers their overall Social Security earnings.
3. Zero-Income Years Affect Benefit Calculation
Social Security calculates benefits based on the 35 highest-earning years of an individual’s career. If someone has fewer than 35 years of earnings, zero-income years are factored in, significantly reducing their benefits.
How Much Less Do Women Receive?
According to the Social Security Administration’s data from December 2023, the average retired man receives approximately $2,128 per month, while the average retired woman receives only $1,733.
That’s nearly a $400 monthly difference, which amounts to over $94,000 over a 20-year retirement.
This is a significant issue because women tend to live longer than men. With fewer savings and lower Social Security benefits, they often struggle financially in their later years.
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How Women Can Increase Their Social Security Benefits
Women may not be able to change the past, but they can take steps to maximize their Social Security benefits:
1. Work for at Least 35 Years
Since Social Security uses a 35-year work history to calculate benefits, women should aim to work for at least that long to avoid zero-income years lowering their average monthly benefit.
2. Delay Claiming Social Security
The longer a person waits to claim Social Security (up to age 70), the higher their monthly benefit will be. For every year past full retirement age, benefits increase by about 8%.
3. Consider Spousal Benefits
Married women may be eligible for spousal benefits, which allow them to receive up to 50% of their spouse’s benefit amount. If their benefit is lower, switching to a spousal benefit may be beneficial.
4. Continue Working Part-Time
Even if full retirement isn’t possible, working part-time can help increase lifetime earnings and boost Social Security benefits.
5. Plan for Additional Retirement Savings
Since Social Security alone may not be enough, women should invest in 401(k) plans, IRAs, or other savings options to supplement their income.
Final Thoughts
Women continue to receive lower Social Security benefits than men due to wage disparities, career breaks, and fewer years in the workforce.
However, strategic planning—like working longer, delaying benefits, and considering spousal options—can help close the gap. Understanding these factors can help women take control of their financial future and ensure a more secure retirement.
Disclaimer- Our team has thoroughly fact-checked this article to ensure its accuracy and maintain its credibility. We are committed to providing honest and reliable content for our readers.
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