The Truth About Social Security: What Women Need to Know to Maximize Benefits
For many women, Social Security is a key part of their retirement income. But did you know that women often receive lower Social Security benefits than men? This is because of factors like wage gaps, time spent out of the workforce caring for family, and longer life expectancies.
If you’re a woman planning for retirement, it’s essential to understand how Social Security works and how to maximize your benefits to secure your financial future.
Let’s break down what you need to know.
1. The Best Age to Claim Social Security
Many people assume they should start claiming Social Security at 62, but doing so reduces your monthly benefits for life. If you wait until full retirement age (FRA), which is 66 or 67 depending on your birth year, you’ll receive 100% of your benefit.
Want to get the most out of Social Security? If you delay claiming until age 70, your benefits increase by 8% per year. That’s a significant boost for your retirement income.
If you’re still working or have other savings, delaying your claim may be one of the smartest financial moves you can make.
2. Social Security Spousal Benefits: Are You Missing Out?
If you’re married, you may be eligible for spousal benefits, which can equal up to 50% of your spouse’s full retirement benefit. Even if you never worked or had lower earnings, you can still receive a portion of your spouse’s benefits.
And here’s a little-known fact: If you’re divorced but were married for at least 10 years, you may still qualify for spousal benefits!
Spousal benefits don’t reduce what your ex-spouse receives—so if you’re eligible, make sure to claim what’s rightfully yours.
3. Social Security and Divorce: What Women Need to Know
Divorce can complicate Social Security planning, but it doesn’t mean you’re left without options. If you were married for 10 years or more and haven’t remarried, you can claim Social Security based on your ex-spouse’s work record.
This is especially beneficial if your ex earned significantly more than you did. You could be entitled to up to 50% of their benefit without impacting what they receive.
Make sure to check with the Social Security Administration about your eligibility—it’s money you may not want to leave on the table.
4. What Widows Should Know About Social Security
If your spouse has passed away, you may qualify for survivor benefits, which can be up to 100% of what your spouse was receiving.
You can begin collecting survivor benefits as early as age 60, or even 50 if you are disabled. If you were caring for a child under 16, you may be able to receive benefits regardless of your age.
Survivor benefits can be a major source of financial stability, so it’s important to understand how they work.
5. Social Security Mistakes to Avoid
To get the most from your benefits, avoid these common Social Security mistakes:
Claiming too early and reducing your lifetime benefits.
Not checking your earnings record—errors in your work history can reduce what you receive.
Not coordinating with a spouse—optimizing Social Security as a couple can lead to higher total benefits.
Ignoring tax implications—up to 85% of Social Security benefits can be taxed, depending on your other income.
Take Control of Your Social Security Strategy
Understanding your Social Security options is one of the smartest financial moves you can make. Whether you’re planning for retirement, navigating divorce, or figuring out spousal benefits, having the right strategy can mean the difference between just getting by and living with financial security.
I specialize in helping women maximize their Social Security benefits and create a personalized retirement strategy. Let’s make sure you get everything you deserve. Schedule a call with me today to discuss how to make Social Security work for you!
Disclosures
Money Matters Wealth Solutions is a dba of The Wealth Boutique, a registered investment advisor with the Securities and Exchange Commission. The Wealth Boutique and each of the DBAs are not under common ownership but owned and operated separately. All financial planning and advisory services are provided by The Wealth Boutique. All investments involve risk and unless otherwise stated, are not guaranteed. Be sure to consult with a tax professional before implementing any investment strategy.| Full Disclosure | CRS
This content was generated with AI assistance. While we strive for accuracy, AI may not capture all current laws and market conditions. This information is for informational purposes only and should not be considered personalized financial advice. Always consult a licensed financial advisor for decisions tailored to your unique situation and goals. AI is used to enhance insights, not replace professional guidance.