Research from the AARP Public Policy Institute indicates that women are more dependent on Social Security for retirement income compared to men. However, the findings reveal that, on average, women receive approximately $4,800 less in annual Social Security retirement benefits than their male counterparts.
Several factors contribute to this financial imbalance post-retirement. One significant issue is the persistent wage disparity; as of the first quarter of 2026, women earned a median weekly wage of $1,098, which is about 80.6% of the median for men at $1,362, according to data from the Bureau of Labor Statistics.
Additionally, a majority of caregivers—around 61%—are women, leading many to take time off or reduce working hours to fulfill caregiving responsibilities, as highlighted in an AARP survey.
These elements often result in women saving less for retirement, which increases their reliance on Social Security benefits. Moreover, reports suggest that women generally tend to live about five years longer than men, according to the National Center for Health Statistics.
The costs of care also add to the burden; women over 65 can expect to pay an average of $350,000 for care, while men incur costs averaging $250,000, as noted by JP Morgan Asset Management.
Financial advisors emphasize that claiming Social Security retirement benefits is particularly vital for women due to these challenges. As of late May, over 63 million Americans were enrolled in Social Security retirement benefits, with around 28 million being female retired workers, about 2 million spouse beneficiaries, and over 3.3 million elderly widows receiving benefits.
Evaluating Claim Timing
The timing of when to start receiving Social Security retirement benefits can involve crucial trade-offs for both genders. Claiming benefits at the earliest age of 62 results in permanently reduced monthly payouts—potentially as low as 70% if one’s full retirement age is 67. Those born after 1960 receive 100% of their benefits at age 67, and the longer one waits—up to age 70—the more the benefits increase by 8% each year.
Experts generally recommend waiting to claim, especially for women, who could greatly benefit from higher monthly checks given their longer life expectancy.
Social Security benefits receive annual cost-of-living adjustments, but working while claiming early can result in a reduction based on earnings. Once reaching full retirement age, these reductions are lifted, and benefits are recalculated by the Social Security Administration.
Niv Persaud, a financial planner, mentions that health and longevity play a role in deciding when to claim. For example, one client of hers, a cancer survivor, opted to claim early out of concern for her time left to wait.
It’s also important to ponder other retirement income sources and expected expenses in retirement, according to Persaud.
Influence of Marital Status
Research shows that nearly 60% of women receive Social Security based on their work records. Women married to higher earners may qualify for more significant benefits. About 5 million women receive benefits tied to their spouse’s work, with these benefits averaging about $1,110 monthly.
Divorced women married for ten years or more can also claim benefits based on their ex-spouse’s record. Survivor benefits are available as well, allowing a woman to claim based on her deceased spouse’s work history, with about 3.3 million women over 60 doing so.
For couples with higher-income spouses, billing strategies may need adjustment. Jeff Judge, a financial planner, indicates that a spouse’s claim isn’t just personal; the surviving partner could inherit benefits if the higher-earning spouse dies.
The benefits a surviving spouse receives depend on the decedent’s age and entitlement at death. If the deceased was receiving reduced benefits, the survivor’s amount would also be diminished, making it imperative for women to consider this carefully.
Seeking Professional Guidance
The Social Security Administration offers estimated monthly benefits depending on when individuals decide to claim. They can also track eligibility for spousal and survivor benefits. However, keeping records and monitoring earnings history is essential for correcting potential errors.
While the Administration can’t offer personalized advice on when to file, consulting a financial planner could be invaluable. Judge emphasizes the importance of informing clients before they make decisions surrounding Social Security claims.
Ultimately, the difference between a beneficial and detrimental decision about Social Security can be substantial, impacting a financial planner’s compensation significantly.
