Personal Finance, Retirement Planning, Social Security, Surviving Spouse, Women Investors
February 19, 2019

It may be a good idea for a woman to retire later rather than sooner.

Why Woman Are Delaying Retirement By Freedman Financial

Leaving the workplace after 65 may help position a woman for slightly greater retirement income and reduce some of the pressure of funding her “second act.”

Women tend to receive smaller Social Security payments than men. This doesn’t necessarily reflect a difference in earnings. Social Security benefits are calculated based on a person’s 35 highest-earning years; yet, a woman may spend fewer than 35 years on the job due to time out for child care and eldercare.1

If someone works less than 35 years, Social Security fills in the “missing years” with zeros. Women born between 1946–60 average 7.7 years of zero earnings. Additional years at work mean fewer zeros and greater monthly benefits.1

Every extra year worked means one less year of retirement to fund. Working longer also gives a woman’s invested retirement savings more time to grow and compound further.

Working longer leads to larger monthly Social Security benefits. For each year a woman delays claiming Social Security after age 66, her benefit payout rises by 8%.2

This material does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty.

Tracking# #1-807989

1Fool.com, “Why More Women Should Work Into Retirement” (December 11, 2016)
2Kiplinger.com, “Why You Should Delay Social Security Benefits” (January 2017)

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