The Gender Pay Gap in Social Security
We know that there is still a gender pay gap for women, so what does this mean for your Social Security payouts?
We know that there is still a gender pay gap for women. As of 2024, women earn about 83 cents for every dollar earned by men on average, according to the U.S. Bureau of Labor Statistics (BLS).¹ That difference adds up over time, especially when it comes to Social Security.
How the Pay Gap Affects Social Security
If you’re a woman, you may receive lower Social Security benefits due to lifetime earnings being lower. In 2023, the average monthly Social Security benefit for retired women was $1,544, compared to $1,911 for men.²
This gap is influenced not only by pay disparities but also by time out of the workforce. Many women pause or reduce their work hours to care for children, aging parents, or sick family members—contributing to fewer years of earnings and lower contributions to Social Security.
Additionally, research shows that women retire with about 30% less in retirement savings than men, making them more dependent on Social Security.³
Why Do Women Save Less?
About 50% of women aged 55–66 have no personal retirement savings, compared to 47% of men, per the U.S. Census Bureau.⁴ On top of that, the average Boomer household retires with close to $28,000 in non-mortgage debt.⁵
Women often absorb everyday expenses that reduce their ability to save: unexpected school costs, vet bills, auto repairs, and more. These seemingly small but frequent financial commitments can add up and reduce the ability to build long-term savings.
The Longevity Factor
Women usually outlive men by an average of 5–6 years.⁶ That means retirement savings must stretch further. Social Security isn’t designed to be the only source of income in retirement—yet for many women, it becomes a primary or sole source.
What Can Be Done?
1. Consider Delaying Claiming Benefits
If you delay collecting Social Security beyond your full retirement age (FRA), your benefit increases by about 8% per year until age 70.⁷ That increase is permanent—and can make a big difference in your long-term income.
2. Work Longer if You Can
Social Security benefits are based on your 35 highest-earning years.⁸ If you have fewer than 35 working years, the formula includes zeros, which lowers your average earnings. Working longer, especially in your higher-earning years, can replace lower-earning or non-earning years and increase your payout.
3. Save More Where Possible
Start small. Even saving $200 a month from your 30s, invested at 6% annually, could yield around $200,000 by age 60 (hypothetical example not accounting for inflation or taxes).
4. Create a Realistic Budget
Budgeting doesn’t have to be restrictive. It can be empowering. A smart, personalized budget can reveal opportunities to save and prioritize retirement contributions without feeling like a sacrifice.
5. Prioritize Your Retirement Over College Savings
Your children can borrow for college—you can’t borrow for retirement. Consider this when deciding how to allocate your savings. It may feel counterintuitive, but protecting your retirement is also a way of protecting your kids from future financial burdens.
MSA Money Coaches are here to help you take control of your finances and create an action plan that fits your goals. Whether you need help regarding budgeting, saving, or retirement—we’re here to support you. Schedule a coaching session today.
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Past performance does not guarantee or predict future performance. Investing involves risk. Your investments may gain or lose money over time. Potential investment outcomes listed do not reflect actual investment results and are not a performance guarantee. Individual investment results will vary.
1 “Highlights of Women’s Earnings.” U.S. Bureau of Labor Statistics, 2024. www.bls.gov
2 “Monthly Statistical Snapshot.” Social Security Administration, 2023. www.ssa.gov
3 “Women & Money: Closing the Gap.” Fidelity Investments, 2023. www.fidelity.com
4 “Retirement Savings Trends.” U.S. Census Bureau, 2023. www.census.gov
5 “Survey of Consumer Finances.” Federal Reserve Board, 2023. www.federalreserve.gov
6 “National Vital Statistics Report.” Centers for Disease Control and Prevention (CDC), 2023. www.cdc.gov
7 “Retirement Planner: Delayed Retirement Credits.” Social Security Administration, 2023. www.ssa.gov/planners/retire/delayret.html
8 “How Social Security Calculates Your Benefits.” Forbes Advisor, 2023. www.forbes.com
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