AARP: Social Security gender gap costs women $4,800 a year

Women receive about $4,800 less in annual Social Security retirement benefits than men, according to new research from the AARP Public Policy Institute. The gap traces to two structural factors that compound over a career.

Women earned $1,098 in median weekly earnings during the first quarter of 2026, or 80.6% of the $1,362 men earned, Bureau of Labor Statistics data show. The Social Security Administration calculates retirement benefits using the 35 highest-earning years. Lower lifetime earnings produce lower payments, and that shortfall widens when a woman also steps out of the workforce for caregiving.

AARP found that 61% of caregivers are women. Many reduce hours or leave jobs entirely to handle those responsibilities, shrinking both the earnings record and the years available to save for retirement. That leaves women more reliant on Social Security for income, the research says.

Women also live about five years longer than men on average, according to the National Center for Health Statistics. They face higher care costs in old age. JPMorgan Asset Management estimates the average lifetime care cost for women 65 and older at $350,000, versus $250,000 for men. Those numbers make the claiming decision higher-stakes for women, financial advisors said.

The claiming math

More than 63 million Americans receive Social Security retirement benefits, according to SSA data through May. Women account for roughly 28 million retired worker beneficiaries and almost 2 million spousal beneficiaries. Another 3.3 million aged widowers also receive benefits.

The tradeoff is straightforward. Claim at 62, the earliest eligibility age, and the benefit is permanently reduced. For someone with a full retirement age of 67, the early claim is worth just 70% of the full benefit, the SSA said.

At 67, beneficiaries born in 1960 or later receive 100% of what they are due. For each year they delay past full retirement age up to 70, the benefit grows by 8%. Experts generally encourage waiting. The logic is stronger for women, who on average collect checks for more years. The $4,800 annual gap means a woman claiming at 62 on a reduced benefit sees a smaller base for cost-of-living adjustments, compounding the shortfall over a longer retirement.

The earnings test

Claiming before full retirement age while still working triggers the retirement earnings test. Benefits get reduced if earned income exceeds certain thresholds. Once the beneficiary reaches full retirement age, the test drops away and the SSA recalculates the benefit to credit months that were reduced or withheld.

Health status matters too. Niv Persaud, a certified financial planner and managing director at Transition Planning & Guidance in Atlanta, said one of her clients recovering from cancer claimed early because she worried she would not live long enough to justify waiting. Persaud said retirees should also factor in other sources of retirement income and expected spending.

Spousal and survivor strategies

Nearly 60% of women receive benefits based on their own work records, AARP found. About 5 million women get benefits either solely from a spouse's record or combined with their own. Those spousal benefits average $1,110 per month.

Divorced women who were married at least 10 years can claim on an ex-spouse's record. Survivor benefits are also available when a spouse dies, even an ex. About 3.3 million women 60 and older receive survivor benefits, AARP said.

Jeff Judge, a certified financial planner and managing director at Chesapeake Financial Planners in Forest Hill, Md., said couples with one higher-earning spouse should coordinate their claiming decisions. When the higher earner dies, the surviving spouse inherits that benefit amount.

"A spouse's claiming decision is not just their problem," Judge said. "Women should care deeply about that coordination."

The survivor benefit depends on the survivor's age and the amount the deceased was entitled to at death. If the deceased claimed reduced benefits, the survivor's check is also lower, the SSA said.

What to do

The SSA provides estimated monthly benefits for claiming ages 62 through 70. It can also track eligibility for spousal and survivor benefits. The agency cannot give personalized claiming advice.

Experts recommend keeping records of earnings history and marriages to catch errors. Judge said he sets aside a full meeting to walk through Social Security with clients, then lets them decide.

"The difference between a good decision and a bad decision on Social Security probably pays for a financial planner," Judge said.

For those building additional retirement income through investments, see our guide to best stock brokers.