Women get $4,800 less in annual benefits

Women rely more on Social Security than men to provide income in retirement new research From the AARP Public Policy Institute.

But on average, women receive about $4,800 less per year in Social Security retirement benefits than men, according to public policy research provider AARP, a nonprofit, nonpartisan organization that represents individuals age 50 and older.

The research highlighted several factors that leave women at a financial disadvantage in retirement.

First, women still tend to earn less than men. Women’s average weekly earnings in the first quarter of 2026 were $1,098; this accounted for 80.6% of men’s average earnings of $1,362. Bureau of Labor Statistics data.

Second, 61 percent of caregivers are women AARP’s research. As a result, they are more likely to take time off from the workforce or reduce working hours to devote time to caring responsibilities.

Both factors leave women with less retirement savings, making them more dependent on Social Security, according to AARP research.

Women live an average of five years longer than men, according to research National Center for Health Statistics.

Research shows that women are more likely to need care. Using paid care, the average lifetime cost for women ages 65 and older is $350,000 compared to $250,000 for men. JPMorgan Asset Management.

Financial advisors say these factors make Social Security retirement benefits a high-risk decision for women.

More than 63 million Americans, including workers, their dependents or survivors, are receiving Social Security retirement benefits, according to late May data from the Social Security Administration.

Women represent nearly 28 million retired worker beneficiaries and nearly 2 million spouse beneficiaries, according to the data. More than 3.3 million elderly widows also benefit from social benefits.

Claim at the earliest retirement age of 62 and receive permanently reduced benefits. So, assuming your full retirement age is 67, this may only be 70% of your full benefit. Social Security Administration.

Beneficiaries who are 67 years old are eligible to receive 100% of the benefits paid to them, provided they were born in 1960 or later. Others may have an earlier full retirement age if they were born before 1960.

Individuals will receive an 8% benefit increase for each year they wait to claim benefits from full retirement age to age 70.

Experts generally encourage beneficiaries to wait to file a claim.

Waiving the claim may be particularly beneficial for women, who will benefit from higher monthly checks if they live longer.

Social Security benefits receive annual cost-of-living adjustments to keep up with inflation.

Because the Social Security Institution, 35 years Using the highest earnings to calculate benefits could help women work longer if it helps raise their earnings records.

People who benefit from SSI retirement benefits and continue to work before reaching full retirement age will be subject to retirement earnings test; This means their benefits may be cut if their income exceeds this limit. certain thresholds. However, once they reach full retirement age, this test will no longer apply and their benefits will be recalculated for the months in which Social Security benefits were reduced or cut, according to the Social Security Administration.

Health and longevity are also among the factors that retirees should consider when deciding when to file a claim, according to Niv Persaud, certified financial planner and managing director of Transition Planning & Guidance in Atlanta. One of Persaud’s clients, who is recovering from cancer, said she decided to file for Social Security early because she was concerned she didn’t have a long enough life expectancy to justify waiting.

It also helps to consider what other sources of retirement income you expect to have and how much you expect to spend in retirement, Persaud said.

According to AARP research, nearly 60% of women receive Social Security benefits based on their employment records.

Women who have spouses who earn more than they do will be able to receive higher Social Security payments.

According to AARP, nearly 5 million women receive benefits either based on their spouse’s employment records alone or along with their own retirement benefit amounts. These benefits average $1,110 per month, according to the study.

Divorced women who have been married to their ex-husband for at least 10 years will be able to receive assistance based on their ex-spouse’s record.

Moreover, when a spouse dies, women can claim survivor benefits based on that person’s employment record (even if that person is an ex).

According to AARP, approximately 3.3 million women age 60 and older receive survivor benefits.

Couples whose spouses have higher incomes may want to coordinate their claiming decisions.

“A spouse’s claim decision is not just their problem,” said Jeff Judge, certified financial planner and managing director of Chesapeake Financial Planners in Forest Hill, MD.

When the spouse with the higher interest dies, the surviving spouse can inherit that amount, he said.

According to the Social Security Administration, the amount of benefits surviving spouses receive depends on their age and the amount the decedent was entitled to at the time of death. If the deceased spouse’s benefits were reduced, the survivors’ benefits will also be reduced, according to the agency.

“Women should care deeply about this coordination,” the judge said.