Women’s History Month is coming to an end. Despite progress, women still encounter obstacles, particularly in retirement planning and financial security. Let’s reflect on these challenges and explore solutions.
Historically, women spend less time in the workforce than their counterparts. How does this impact their Social Security? Working less negatively affects many women because Social Security eligibility and benefit payments are based on how long you work and how much you earn.
Does the gender pay gap affect women’s Social Security benefits? Yes. In 2020, it was reported that a woman earns 83 cents for every dollar that a man makes. Social Security benefits are calculated based on an individual’s earnings. Therefore, the less income a woman has, the less Social Security benefits she will receive.
Women have a longer life expectancy than men. That’s a win, right? Living a longer life comes at a cost. When a woman lives longer, she needs more money. There are many associated costs with growing older and as a result of living longer, women have the potential to outlive their money. This “longevity risk” is a big concern.
What Social Security rules are important for women to understand? There are many important concepts that can help women make the most out of their potential Social Security benefits. Understanding your eligibility for benefits or multiple benefits, knowing rules regarding spousal, ex-spousal, and survivor benefits, analyzing strategies to maximize your benefit, and much more.
Can women overcome these hardships? Yes! And working with a professional, like an RSSA, can help you make the best decisions for your personal circumstances.
Read more about women and Social Security here.
