Shocking Social Security: Women Get $94,000 Less Than Men – Here’s Why?

We’ve made some progress in closing the gender pay gap, but there’s still a long way to go. In 2023, the average woman earned just 83.6% of what the average man-made, according to the Bureau of Labor Statistics. That means women have less money to cover their expenses today—and less saved for retirement.

Why Do Women Receive Less From Social Security?

Several factors contribute to women receiving smaller Social Security checks than men. Here are the main reasons:

1. The Gender Pay Gap – Women historically earned less than men, which directly impacts their Social Security benefits since payouts are based on lifetime earnings. Back in 1960, women made just 61 cents for every dollar men earned. Today, it’s closer to 80 cents, but the long-term effects still linger.
2. Career Breaks for Caregiving – Many women step away from the workforce to care for children or family members. This means fewer working years, slower career advancement, and lower lifetime earnings, all of which shrink their Social Security benefits.
3. Work History Matters – Social Security benefits are calculated based on the 35 highest-earning years of a worker’s career. If a person hasn’t worked for at least 35 years, the missing years count as zeroes, pulling down the overall benefit amount.

For example, someone earning $60,000 per year for 35 years would receive about $2,311 per month in Social Security benefits. But if they have just one zero-income year, their benefit drops to $2,265 per month—$46 less per month, or $552 per year. Women with longer career breaks or part-time work history see even bigger reductions.

How Much Less Do Women Get From Social Security?

Retired men receive significantly more from Social Security than retired women. Here’s a look at the average monthly benefits as of December 2023:

Gender	Average Monthly Benefit
Men	$2,106.40
Women	$1,713.52

That’s nearly a $400 difference per month. Over a 20-year retirement, that adds up to more than $94,000 less for women.

Why Is This a Big Deal?

This gap is problematic for several reasons:

• Women Save Less for Retirement – Since women generally earn less, they have fewer savings and investments to rely on.
• Women Live Longer – On average, women outlive men, meaning they need even more money to sustain their retirement years.

What Can Women Do to Boost Their Social Security?

While these challenges are significant, there are steps women can take to improve their retirement outlook:

1. Work Longer If Possible – The more years spent in the workforce, the higher the Social Security benefits will be. Women who can extend their careers may see significant gains in their monthly checks.
2. Delay Claiming Social Security – If you can afford to wait, delaying Social Security benefits until age 70 can increase your monthly check by up to 32% compared to claiming at 62.
3. Coordinate with a Spouse – Married women can strategize with their spouses to maximize Social Security. If one spouse has significantly higher earnings, it may make sense for the lower-earning partner to claim earlier while the higher-earner delays their benefits.
4. Consider a Phased Retirement – Instead of retiring all at once, reducing work hours gradually can help bridge financial gaps while allowing Social Security benefits to grow.

A Social Security Bonus That Many People Overlook

Most retirees don’t realize there are ways to boost their Social Security benefits. In fact, one strategy could add up to $22,924 extra per year! Understanding the right claiming strategies and making informed decisions can make a big difference in financial security during retirement.

Final Thoughts

The Social Security gender gap remains a serious issue, but with careful planning, women can maximize their benefits. As the wage gap continues to close, future generations may see more equality in retirement income. For now, knowing how to optimize benefits and plan ahead is the key to financial stability in retirement.

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