Men and women, wealthy and working class, all benefit from monthly Social Security checks in retirement. The program provides the average beneficiary with tens of thousands of dollars per year, but there's a lot of variance in how much specific groups get.
Most people assume that women get less Social Security than men because they often earn less throughout their careers. There is some truth to this, but who benefits more from Social Security depends a little on how you look at it.
Image source: Getty Images.
Men typically get larger monthly checks
When it comes to monthly benefits, men have an edge over women. In July 2024, the average male retired worker received $2,120.80 per month, while the average female retired worker received just $1,727.70 per month. That amounts to a difference of over $4,700 per year.
This is undoubtedly due to the gender pay gap . On average, men out-earn women by a significant amount, though this has gotten better in years past. The Social Security Administration looks at your income history over your 35 highest-earning years when calculating your benefit, so lower earnings definitely hurt women here.
Some women may also receive smaller benefits because they've spent fewer years in the workforce due to caretaking obligations. When you've worked fewer than 35 years, the government includes zero-income years in your Social Security benefit calculation, which shrinks your monthly checks.
Some women could get larger lifetime benefits
When we look at lifetime Social Security benefits , the advantages aren't so clearly in men's favor. This comes down to life expectancy. The average 62-year-old man today can expect to live for about 21.6 more years. That would give men about 259 months to claim Social Security benefits if they applied right away. The typical 62-year-old woman today can expect to live 24.5 more years, so these women have 294 months to claim Social Security if they apply as soon as they become eligible.
If we use these average life expectancies and the monthly benefits listed above, the average man still comes out slightly ahead in terms of lifetime Social Security benefits. He would get about $549,287.20 from the program, compared to just $507,943.80 for the average woman. That's a difference of just over $41,000.
But if life expectancies deviate even slightly from those listed above, it could tip the scales in favor of women. If the man in our example only lived to 82 and the woman lived to 88, the woman would wind up with a lifetime benefit more than $30,000 greater than her male counterpart's.
This assumes that both claim the average monthly benefits at 62. If one or both delay benefits , that adds another variable. Waiting to apply means you get fewer years of checks, but each check is larger. For those with long life expectancies, delaying Social Security could give their lifetime benefit a significant boost.
Social Security likely replaces more pre-retirement income for women
Social Security was designed to replace about 40% of pre-retirement income for the average worker. But the benefit formula is structured in such a way that lower earners receive greater levels of pre-retirement income replacement, while higher earners get less.
As we already mentioned, men typically earn more throughout their careers than women. So they may find that Social Security doesn't replace as much of their pre-retirement earnings as it does for women. This could force men to save more on their own if they hope to maintain the same income level in retirement as they're used to.
It's worth noting that the above information contains generalizations based on average earnings and life expectancies for men and women. There's obviously a lot of variance on a personal level. Some women outearn many men, while some men may significantly outlive the average woman. So while it's helpful to understand how these factors may affect your benefits, it's also important to recognize that your personal experience may be different.
The $ 22,924 Social Security bonus most retirees completely overlook
If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $ 22,924 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Simply click here to discover how to learn more about these strategies.
View the "Social Security secrets" »
The Motley Fool has a disclosure policy .
Local News
