9 Social Security Traps That Leave Women With Smaller Checks

Ideally, your Social Security benefits help round out your retirement savings, allowing you to maintain the same quality of life you enjoy now after retirement. However, on average, women receive $332 less per month in Social Security benefits compared to men. 

Since women also tend to live longer than men, the lower Social Security check can have lifelong repercussions. Fortunately, with the right knowledge, you can avoid some of the major pitfalls that cut down women's hard-earned benefits checks.

Keep reading to learn more about the common challenges facing female workers and their Social Security checks, and, most importantly, how to minimize the risks to your retirement.

If you are a stay-at-home spouse, you're entitled to a monthly payment amount of up to 50% of your working spouse's Social Security check.

While you can start claiming spousal benefits at age 62, it's smart to wait until you've reached what the government deems your full retirement age (FRA) to start taking benefits. Taking benefits early reduces your monthly check amount permanently, but waiting to claim until at least age 67 ensures you receive a full benefits check.

You might assume that spousal benefits only apply to spouses who are married at the time of retirement, but you'd be wrong. If you were married for at least 10 years and haven't remarried at the time of claiming benefits, you can apply for spousal benefits based on your ex's earnings record. This is true even if your ex has remarried. Neither their benefit nor their current spouse's spousal benefit will be impacted.

Additionally, your ex-partner won't be notified that you applied for spousal benefits based on their record, and they don't need to approve your application. All you have to do is submit the right documentation to the Social Security Administration to qualify.

Your Social Security benefit is calculated based on your highest earnings over a period of 35 years. If you worked for fewer than 35 years, you may still be eligible to receive a benefit, but your average earnings will be lower.

This doesn't mean you can't plan to be a stay-at-home parent or spouse, but it does mean you and your partner should consider the long-term financial impact on your eventual retirement benefits and plan accordingly.

If you were married to someone who has since passed away, you may qualify for survivor benefits based on their work history. This is true even if you were divorced from the beneficiary at the time of their death. 

It's possible for you to collect your ex's Social Security when they die. As long as you were married at least nine months before the death, didn't remarry before you turned 60, or are raising your former spouse's children, you likely qualify for benefits.

While the average American man lives until around age 75, women's average life expectancy is closer to 81.

You aren't guaranteed to live longer than the men in your life, but you should plan on your Social Security check doing some heavier lifting as your retirement savings dwindle. Consider taking steps early in retirement to bolster your savings by taking on a part-time job or renting out a room.

If you worked for fewer years than your spouse or ex-spouse, you might assume your spousal benefits will be automatically higher than your individually earned benefits.

But don't default to spousal or survivor benefits without running the numbers first: your spouse would have to earn substantially more than you (or have worked many decades more than you) for 50% of their benefit to surpass what you earned if you spent some time in the workforce.

Whether you end up taking spousal benefits or individual benefits, you need to carefully calculate how much your benefit will be reduced by if you take it before you reach full retirement age. The total reduction depends on how many months it is before your FRA. For instance, if your FRA is 67 but you claim benefits at 62, 60 months before your FRA, your benefit would decrease by 30%.

Note that this benefit reduction is permanent: your benefit will be recalculated to account for inflation and any additional earning years, but it will remain reduced for the remainder of your life.

Since you can take benefits as early as age 62, you might consider claiming them while you're still working.

This can supplement your Social Security income to a point, but if you're younger than full retirement age, your benefits will be reduced by $1 for every $2 you earn over the threshold of $23,400. If you're at or over your full retirement age and still working, however, your benefits won't be reduced, and your benefits will increase regardless of income until you reach 70. 

Even part-time work can impact your income. If you're thinking of picking up a side gig, even something as small as selling the occasional craft on Etsy, you should make sure the benefit of the earned income outweighs the potential reduction in Social Security benefits. Bear in mind that the SSA only considers you officially retired if you work for yourself for fewer than 15 hours a month.

The earlier you start planning for the realities of your Social Security check, the better prepared you'll be to maximize your retirement benefits. If you're having a hard time determining the best Social Security strategy for your needs, consider meeting with a financial planner who can analyze your situation and make recommendations on timing, divorce benefits, and spousal benefits. A little planning now can go a long way in the future.