Women and Social Security

Social Security is a significant component in retirement income; and more so for women, who generally live longer than men and are more likely to be single.  Because women tend to take time out of the workforce to care for children or aging parents, they earn less than men on average, therefore, their overall career earnings and savings may be lower.  Below are a few things women should keep in mind:

1. Try to Delay.  You can begin taking retirement benefits at age 62, rather than waiting until your full retirement age (FRA), which is between 65 to 67.  If you take Social Security before your FRA, the amount of your monthly benefit payment will be reduced.  If you delay collecting benefits beyond your FRA, the amount of your monthly benefit will increase each year until you reach 70.
2. Keep Working and Receive Social Security.  Even if you are still working or earning self-employed income you can collect Social Security.  However, there is an important caveat.  If you collect prior to your FRA, your benefit amount may be reduced based on the level of your earned income.  When you reach your FRA, there is no penalty for working and claiming Social Security.
3. You have Options If you are Married, Widowed, or Divorced.  If married, you can receive Social Security payments based on your own earnings record or collect a spousal benefit of up to 50% of your spouse’s full Social Security benefit.  If divorced, you may be eligible to receive benefits based on your ex-spouse’s work history.  If you are a widow, you are eligible to collect your spouse’s Social Security payments as a survivor benefit. 

See Fidelity Viewpoints, How Women Can Get the Most from Social Security, Forbes, Oct. 7, 2014.