$15,425 a year is the average Social Security benefit for women claiming at 62, versus $18,876 for men, with women still receiving less at every claiming age.
The gap persists because benefits are based on a worker’s 35 highest-earning years, so lower lifetime pay and years out of the workforce for caregiving drag down women’s averages.
Delaying claims can still lift income: Social Security says benefits rise about 8% a year after full retirement age until 70, taking women’s average annual benefit to roughly $27,400.
Over retirements lasting 20 years or more, even modest monthly shortfalls can compound into tens of thousands of dollars in lost lifetime income, making savings, 401(k)s and IRAs more important.
With benefit cuts looming in 2032, can proposed caregiver credits truly fix the Social Security gender gap?
Beyond raising taxes on the wealthy, what systemic changes can prevent women from retiring into poverty?
Countdown to 2032: Social Security’s Solvency Crisis and Its Disproportionate Impact on Women
Overview
Social Security is facing a serious financial threat, with the latest Trustees report confirming that the main retirement trust fund is now projected to run out by 2032, a year earlier than previously expected. This change is partly due to recent legislation that reduced tax revenue for the program. If Congress does not act, automatic benefit cuts of over 20% will hit millions of retirees, especially women, who rely heavily on these payments. The report highlights that women, particularly women of color, are most vulnerable to these cuts because of lower lifetime earnings and greater dependence on Social Security for basic needs.