Retired Worker Benefits

In theory, Social Security is set up to pay the same retired worker benefits to women and men with exactly the same work histories and earnings. But the reality is that women don’t typically have the same work histories and earnings as men, so their retired worker benefits are usually lower. Women have fewer work years that count toward Social Security benefits because they tend to move in and out of the workforce due to family caregiving responsibilities. That said, many women are eligible for a retired worker benefit based on their own work histories. Back in the 1940s, women made up only 12 percent of Social Security beneficiaries receiving a retired worker benefit. Today, 49 percent of retired worker beneficiaries are women—underlining the remarkable growth of women in the labor force over the decades. However, women often work fewer than the 35 years the full benefit is based on. As noted before, a zero is entered into the benefit calculation for each year under 35, which reduces the benefit amount. Women retiring today average 13 years of zeroes. All of this adds up to a major gender gap in retirement benefits. The average benefit for retired women workers in 2005 was $867 a month, compared to the average retired worker benefit for men of $1,130. This is a difference of $263 a month.