Dear Editor:
Whenever I talk before groups of working women, one question always comes up. Why, I’m asked, do women often get less than men from Social Security when they retire? Especially since, as some women note, they make more money than many men.
The answer usually comes down to this: Social Security is based on how many years you worked, as well as how much you earned while working.
When it’s time for you to apply for retirement benefits, Social Security will look at the highest 35 years of earnings to determine your basic benefit payment. For example, if you started working at 18 and worked every year until you were 66, you would have 48 years of earnings. Social Security would adjust those earnings for inflation and take the highest 35.
What if you don’t have 35 years of work? Well, you only need 10 years of working and paying Social Security taxes to qualify for retirement benefits. But if you don’t have 35 years of work, then we use a zero for each non-working year when we do our calculations.
Why are women more likely to be affected by this than men? Well, it’s not news that women are more likely to take time off from careers to care for children or for older relatives. Women in fact average about 27 years in the workforce before retiring, while men average 39 years. Eight years of zeros can make a big difference.
It’s also true that women are much more likely to have part-time jobs than men. And while a woman working part time may earn an hourly wage that is higher than a male employee, her annual wages may be less.
We always encourage folks to start early in planning for their retirement and figuring out where the money they will need might come from. The Social Security Statement that is sent to you each year is a great place to begin. It shows how much you and your family can expect to receive from Social Security when you retire or become disabled or die.
But women also need to know how career choices might affect their future Social Security benefits, as well as widowhood or divorce.
When you visit www.ssa.gov/women, you’ll find information on all of the issues that you need to think about. We also can help you plan for retirement, show you how to calculate your benefits and how to file for benefits online.
Yvonne Bryant
Social Security Manager, Jersey City