Social Security is more than just a monthly payment. It's a safety net that helps millions of people maintain a certain level of economic stability in retirement, in the event of a disability, or after the loss of a loved one. Its goal is clear: to guarantee a minimum of financial security when it's needed most.
Did you know that not everyone receives the same amount? On average, men collect more than women. The difference is not minor and is reflected across all age groups. Let's break it down.
How benefits are calculated
Payments from Social Security are based on each person's work history. The earnings from the years worked are taken into account and an average is calculated. The higher your earnings and the more years you work, the higher your benefit will be.
However, this calculation also reflects the inequalities that exist in the labor market. The wage gap between men and women doesn't disappear when retirement comes. That's why the benefits aren't equal either.
The numbers don't lie
Let's look at some examples of average payments by age:
- 62 years: Men $1,370.10 / Women $1,095.01
- 65 years: Men $1,546.26 / Women $1,249.12
- 67 years: Men $1,853.68 / Women $1,478.02
- 70 years: Men $1,965.31 / Women $1,568.68
As you can see, the difference is consistent and significant. Although both sexes see their benefits grow with age, the gap persists.
Why does this gap occur?
There are several factors behind these figures. One of the most important is that women are more likely to interrupt their careers. Whether it's to care for children or other family members, these years out of the workforce generate zero income, and this directly affects the calculation of Social Security benefits.
In addition, women, on average, earn less than men throughout their working lives. Even when they work the same number of years, the accumulated earnings tend to be lower, which results in a lower final benefit.
Another cause has to do with longevity. Although women tend to live longer than men, that doesn't always make up for the initial difference in monthly Social Security payments.
What this means for you
Understanding this gap is important for planning retirement. If you're a woman, it's important to look for ways to increase your benefit. Some options include contributing to additional retirement plans, delaying the start of Social Security payments, or keeping a more consistent career.
For men, this shows their advantage, but also the importance of planning for longevity and old age expenses.