economy
Social Security gender gap means women receive about $4,800 less in annual benefits. What to know before claiming
Women tend to earn less and spend more time outside of the workforce, which may reduce their Social Security benefits. Here's what to consider before claiming.
TL;DR
- Women rely more on Social Security for retirement income but receive about $4,800 less annually than men.
- Factors contributing to the gap include lower median weekly earnings for women and more time spent on caregiving responsibilities.
- Women tend to live longer than men, making delayed claiming potentially more beneficial for higher monthly checks.
- Working longer and boosting earnings records can help increase Social Security benefit calculations.
- Coordinating claiming decisions with spouses is crucial, as surviving spouses may inherit a portion of the deceased spouse's benefit.
- Considering health status, longevity, other retirement income sources, and expected expenses is important when deciding when to claim.
- Women may receive benefits based on a spouse's or ex-spouse's work record, including spousal and survivor benefits.
- Seeking advice from a fiduciary financial planner is recommended for personalized guidance on claiming Social Security benefits.