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Securing Your Future: The Critical Role of Social Security for Women

Securing Your Future: The Critical Role of Social Security for Women

April 23, 2024

It’s no secret that women still face financial discrepancies when planning for their financial future. Social Security is included in those differences. Women comprise 56.0% of all Social Security beneficiaries aged 62 and older, and approximately 66.7% of beneficiaries aged 85 and older.

These statistics further reinforce the importance of financial planning and careful Social Security strategies for women in financial planning. It’s never a bad idea to familiarize yourself with the individual challenges common for women regarding Social Security benefits to ensure proper planning and future decision-making.

We’ve included a link an educational resource from the Social Security Administration called “What Every Woman Should Know,” but read on for the main challenges faced regarding Social Security benefits

What Every Woman Should Know

Gender Pay Gap: One of the primary challenges women face is the gender pay gap. On average, women earn $0.80 for every $1 earned by men due to disparities in wages and career opportunities. This wage gap directly impacts Social Security benefits, as benefits are based on lifetime earnings. Lower lifetime earnings can result in smaller Social Security checks, making it essential for women to consider alternative strategies to boost their retirement income.

Career Interruptions: Statistically, women are more likely to take time out of the workforce to care for children or aging parents, leading to gaps in their work history. These career interruptions can affect Social Security benefits, as benefits are calculated based on the highest 35 years of earnings. Gaps in employment can result in fewer years of earnings being factored into the benefit calculation, potentially reducing overall benefits.

Life Expectancy: Women tend to live longer than men, which means they may need to rely on Social Security benefits for a more extended period in retirement. Women must plan for longevity by maximizing their Social Security benefits and supplementing them with other sources of retirement income.

Unique Life Circumstances: Women may face unique life circumstances, such as divorce or widowhood, impacting their Social Security benefits. It creates an even more significant need to understand the rules surrounding spousal, survivor, and divorcee benefits for optimal planning.

Suppose you’re ever navigating a life change, such as a job change, relationship change, or experiencing a caregiving need. Understanding the intricacies of Social Security and how it could impact your financial future later on enables you to make important life decisions with the long term in mind. 

Ready to secure your financial future? Contact Integrity Wealth Management today. Let us guide you through life's transitions with expertise and care. Don't hesitate – reach out now.