Women and men differ significantly in several important ways when it comes to investing in and saving for retirement, as well as personal finance in general. Women, for instance, tend to make less money on average and frequently take time off from work to care for their families or other obligations. When retirement time comes, that may result in lower Social Security payouts. Though women typically outperform males in the investment game, many women nevertheless feel far less confident about money and investing. Recognizing that many women feel ignorant about Social Security and other related matters, the SSA lately provided “important points” for women to think about when it comes to Social Security. Anybody can increase their future retirement funds by using those guidelines, which also apply to males.
Social Security Benefits; Source- CNET
Social Security Benefits For Married Individuals
Married individuals who have worked for ten years or more are eligible to get their benefits in addition to their spouse’s benefits. Anyone with a limited history of employment, including men and women who have spent a significant amount of time raising their children at home, should be aware of this crucial information. After the income-earning partner has applied for benefits, you may claim your spouse’s benefits even if you were never employed or have worked for fewer than ten years. If you are married and anticipate receiving two Social Security payment checks when you retire, you can try to optimize your benefits by delaying the greater earner’s benefit until you are 70 years old.
30% Reduction In Social Security Benefits
You may be able to get a 30% reduction in benefits if you claim before reaching full retirement age as soon as you become eligible. Every person has a complete retirement age at which point they can begin receiving all benefits to which they are eligible, as determined by their past wages. For most people who work today, it is 67. However, we can begin accumulating from as young as age 62. Your benefit payments will be less if you join early, but you will still receive a lot more than if you start late or on schedule. Retaining your benefits until age 70 will increase them by around 8% for every year that you live past your full age for retirement. If you can, this is something you should strive for. You may need to draw more from other retirement accounts until you reach the age of 70. By making the most of your benefit, you may ensure that it will grow larger over time through COLAs and serve as a virtually stable source of income for the rest of your life.
Plans For Social Security Benefits
Ultimately, it makes sense to begin considering and making plans for Social Security as early as possible, regardless of gender, whether you are close to retirement or have decades of work ahead of you. Creating a personal Social Security account on the SSA site could be a good place to start. Once that’s done, you can always check in to get the most recent projections of your prospect’s benefits depending on your wages. Don’t expect to get a large Social Security income; as of July, the average monthly pension payment was only $1,839, or roughly $22,000 for the entire year. You should anticipate more, but not outrageously more, if you and your partner have above-average incomes. Therefore, when it comes to Social Security, both men and women should make wise decisions.
