The Gender Pay Gap in Retirement Benefits
The average retirement benefit for Americans in 2023 is approximately $1,400. While it may seem that this amount is received equally by both men and women, the reality tells a different story.
A Disparity in Monthly Payments
Although Social Security Administration (SSA) benefits are available to all eligible seniors, there is a significant difference in the monthly payments received by men and women.
The Influence of Salary and Career Breaks
Retirees are aware that their benefits are calculated based on their income during the last 35 years of work. However, the gender pay gap plays a role in this calculation. Historically, men have consistently earned higher salaries than women, even when performing the same job functions.
Additionally, women are more likely to take career breaks, particularly when becoming mothers. These breaks affect the number of years of work considered in the calculation of retirement benefits.
The Numbers Speak for Themselves
According to the Social Security Administration, in 2021, the median monthly payment for all retirees was $1,658.03. However, men received an average of $1,838.08, while women received $1,483.75. This translates to a clear difference of $354.33 per month.
When these amounts are multiplied by one year, the difference becomes $4,252. Over a 25-year retirement period, the gap exceeds $106,000.
A Persistent Gap Across All Age Groups
This disparity is evident across all age groups of men and women receiving Social Security benefits, ranging from 62-year-olds to those over 100 years old.
Gender-Based Retirement Benefits by Age
- 62 years: $1,370.10 for men and $1,095.01 for women
- 63 years: $1,387.88 for men and $1,119.64 for women
- 64 years: $1,431.08 for men and $1,158.20 for women
- 65 years: $1,546.26 for men and $1,249.12 for women
- 66 years: $1,816.99 for men and $1,441.82 for women
- 67 years: $1,853.68 for men and $1,478.02 for women
- 68 years: $1,826.01 for men and $1,452.42 for women
- 69 years: $1,860.00 for men and $1,477.39 for women
- 70 years: $1,965.31 for men and $1,568.68 for women
- 71 years: $1,939.71 for men and $1,556.50 for women
- 72 years: $1,951.87 for men and $1,565.79 for women
- 73 years: $1,968.18 for men and $1,572.59 for women
- 74 years: $1,936.28 for men and $1,549.02 for women
- 75 to 79 years: $1,910.12 for men and $1,529.61 for women
- 80 to 84 years: $1,837.44 for men and $1,498.15 for women
- 85 to 89 years: $1,655.19 for men and $1,456.08 for women
- 90 to 94 years: $1,643.80 for men and $1,491.95 for women
- 95 to 99 years: $1,621.84 for men and $1,502.64 for women
- 100 years and older: $1,549.17 for men and $1,511.79 for women
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