- ORIGINAL NEWS
Why Social Security is so important for women: ‘It all comes down to longevity,’ expert says
- SUMMARY
Women face unique challenges in financial planning, particularly in retirement, due to their longer life expectancy.
Social Security plays a crucial role for women, providing guaranteed income throughout their later years.
The age at which you claim Social Security has a significant impact on your monthly income.
Waiting until your full retirement age (FRA), typically between 66 and 67, provides the highest monthly benefit.
However, if you claim before your FRA, your benefit is permanently reduced.
On the other hand, delaying your claim beyond your FRA earns you delayed retirement credits, which increase your monthly benefit by 8% per year up to age 70.
For women, who live on average about six years longer than men, ensuring a steady income in retirement is particularly important.
Compared to men, women generally save less for retirement and may have lower lifetime earnings due to career interruptions or lower wages.
Claiming Social Security early may be necessary in some cases, such as financial emergencies or poor health.
However, it’s generally not a wise move due to the permanent reduction in benefits.
Similarly, delaying your claim past age 70 likely provides no additional financial advantage.
It’s important to carefully consider your individual circumstances and consult with financial professionals to determine the optimal time to claim Social Security.
While there are no guarantees, taking advantage of delayed retirement credits and planning for a potentially longer retirement can help women secure their financial future.
- NEWS SENTIMENT CHECK
- Overall sentiment:
neutral
Positive
“The average woman lives roughly six years longer than men, to about 79 years old.”
Negative
“Women also tend to save less money for retirement than men, putting them in a tougher financial position.”
“Women live almost six years longer than men, on average, to age 79 versus 73½ years old, respectively, according to the Centers for Disease Control and Prevention.”
“That life expectancy gap has widened.”
“Women also often put aside less savings relative to men, both because their average earnings at work are lower and they may have taken time off to care for kids or an aging parent, for example, Franklin said.”