Four Important Things Women Need to Know About Social Security

In 2012, Kelly O’Donnell, Executive Vice President of Marketing at Financial Engines, testified on Capitol Hill before the Senate Committee on Aging about the challenges women face when they retire. Specifically, she spoke with them about the importance of Social Security.

Two years later, not much has changed. Women still need to consider their options when planning their retirement – especially if they are counting on Social Security. The fact is, women tend to plan differently for retirement than men and that can have an impact on their retirement income.

That’s why it’s important to know these facts.

1. Almost half (47%) of all elderly unmarried individuals rely on Social Security for 90% or more of their income. Many of those people are widows. This is important because if you take Social Security too early, you could be leaving money on the table. Money you’ll need to live on for the rest of your life.
2. When it comes to your retirement benefit, everyone is entitled to their own benefit or if married one-half of their spouse’s benefit, whichever is larger. That means you need to do your research. You’ll need to find out what you are entitled to on your “record” (a term used by Social Security to indicate what you’ve earned) versus what’s available to you as a spouse on your partner’s record.
3. You can receive benefits based on your ex-spouse’s work history if your marriage lasted at least 10 years. But if you remarry, you usually can’t receive benefits on your ex-spouse’s record. Once again, you’ll need to do the research, but if you qualify, you could receive the larger amount. We also have some tips for you if you are contemplating divorce.
4. As a former spouse, if your ex dies, you could be eligible for a widow’s benefit on his/her Social Security record even though you were not married to him/her for 10 years if you are caring for their child who is also your child and/or you are unmarried. There are a number of rules associated with this but it’s worth exploring if you think you qualify.

Resources that can help.

Use our Social Security planner to see how much you can get based on making different decisions about when to take your benefits, spousal benefits and more.

The Social Security Administration offers this publication, “What Every Woman Should Know” that summarizes many of the issues facing women and Social Security.

Finally, if you are a Financial Engines customer, you can talk to an Investment Advisor Representative at any time.