It’s no secret that women are more likely to struggle with retirement savings than men. But it’s not just the size of their nest eggs that suffer. The gender pay gap also takes its toll on women’s Social Security checks. Here’s a look at how the average female worker’s benefit stacks up to her male counterpart’s – and what you can do to close the gap.
Unsurprisingly, the typical Social Security benefit for men and women changes from month to month as new people sign up and older beneficiaries die. But as of May 2022, men received about $1,848 per month on average.
Women, by contrast, received just $1,494 per month. That’s a difference of about $354 per month, adding up to $4,248 per year. This really take s its toll over the long term. If a man and woman receiving the average Social Security benefit for their gender claimed checks for 20 years, the man would receive $84,960 more over his lifetime. That’s enough to cover a few years of retirement expenses for most people.
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This difference occurs because Social Security benefits are based on your income during your working years. Women have consistently earned less than men for decades, which translates to a lower average benefit.
Another factor working against women is that they’re more likely than men to leave the workforce once they have children. The government considers your income during your 35 highest-earning years when calculating your…