A hidden retirement gap is costing women more than $5,000 a year

The Social Security program faces potential depletion of its Old-Age and Survivors Insurance (OASI) trust fund by 2032, a situation that disproportionately impacts women. With 63 million Americans relying on these benefits, a shortfall could be catastrophic for seniors dependent on Social Security for essential needs like food and housing. Women, due to their longer average lifespans, collect Social Security benefits for a longer period. At age 65, women are projected to live an average of 23.9 more years, compared to 21.4 years for men. However, this extended reliance occurs while women generally earn less than men, a factor that significantly shapes Social Security income disparities. Recent analysis by FinanceBuzz revealed that women receive $5,254 less per year in Social Security benefits compared to men, a worsening gender gap. This disparity would be even greater if not for many women receiving benefits linked to a higher-earning male spouse's lifetime income. The gender gap in benefits is not uniform across the U.S.; for instance, in Utah, men receive 27% more in monthly Social Security benefits than women.