Women’s guide to Social Security

Planning for a secure and comfortable retirement involves a combination of smart saving, investing, and—perhaps most crucially—understanding how and when to claim Social Security benefits. This is particularly important for women because women tend to live longer¹ and often earn less than men² over their lifetimes, and they face a higher risk of running out of money in retirement. While boosting savings and making wise investment choices are essential, knowing how to strategically claim Social Security can be the key to ensuring a more stable and worry-free future. Helping women know when to claim Social Security benefits could mean the difference between a comfortable retirement and outliving their money. Here are three strategies that women in the workforce should consider:

1. Wait as long as possible before claiming benefits

Full retirement age (FRA) is when someone first becomes entitled to full retirement benefits. For each year beyond FRA that someone waits to claim benefits, Social Security will bump up payouts by 8% annually until the age of 70, which is the maximum age for boosting benefits. For example, a single woman who is entitled to a Social Security benefit of $18,000 yearly at age 67 could see her annual benefit rise to $22,320 if she waits until age 70.³

2. Married? Coordinate with your spouse

When there are two of you, there is additional flexibility in how you can take Social Security benefits. And in cases when one spouse has much lower benefits, the opportunity to maximize Social Security income expands. For example, consider this possible scenario: Whoever is earning more could wait until age 70 to file, and the lower-earning spouse could claim their reduced retirement benefit at age 62 (if retired or earning limited income) and then switch to the spousal benefits when the higher earner files for benefits. The original reduction will be taken into consideration when determining the total monthly benefit. If eligible for both retired worker and spousal benefits, the lower-earning spouse will generally receive the higher of the two amounts.⁴ (Spouses are entitled to up to 50% of their higher-earning partner’s full retirement benefits.⁴)

Maximizing benefits carries over to survivor benefits. By waiting to claim, the higher-earning spouse increased the amount the survivor will receive.⁵ Widowed spouses are due between 71.5% and 100% of the deceased worker’s benefit based on the age the survivor begins collecting.⁶

3. Divorced? Don’t forget about the ex

If divorced for at least two years and still unmarried, and the marriage lasted 10 or more years, a benefit worth up to 50% of the ex’s full Social Security benefit may be claimed. To qualify, the individual must be 62 years of age or older, the ex-spouse must be eligible to begin collecting, and the spousal benefit must be greater than what the individual would receive based on their own work history. Even if the ex-spouse has remarried or isn’t yet collecting Social Security benefits, you’re still eligible to receive benefits based on their earning record. If the ex-spouse has passed away, the same benefits as a surviving spouse may be able to be received.

Maximizing Social Security benefits requires careful thought and planning, but the payoff can be significant in securing a comfortable retirement and make a meaningful difference in employees’ long-term financial well-being. By taking the time to evaluate these strategies, women can set themselves up for a more financially secure and fulfilling retirement.

Key takeaways

Talk with your Bank of America representative about offering our educational materials, programs and events that help demystify Social Security for your employees.
Leverage a women’s employee resource group if you have one where women can learn together and support each other.
Promote a new Social Security calculator (found on the Education Center—launched 1Q25), which provides an illustrative digital experience to help participants see the impact of certain decisions, such as the age to start claiming Social Security benefits.

This discussion of Social Security is general in nature, is intended for informational purposes only, and is not all-encompassing. The circumstances surrounding each situation differ, and additional eligibility requirements or restrictions may apply.

¹ Social Security Administration, “Retirement & Survivors Benefits: Life Expectancy Calculator,” accessed February 2024.

² U.S. Bureau of Labor Statistics, “TED: The Economics Daily,” January 25, 2024.

³ Assumes she was born in 1960 or later. Results shown in today’s dollars. Source: Chief Investment Office, based on calculations from the Social Security Administration Quick Calculator. Accessed February 2024.

⁴ If you were born January 2, 1954, or later, and are eligible for benefits both as a retired worker and as a spouse (or divorced spouse) in the first month you want your benefits to begin, you are required to file for both benefits at once, (unless an exception applies), and you’ll generally receive the higher amount. Source: Social Security Administration, "Benefits for Your Family," accessed February 2024.

⁵ Note: The spouse’s survivor benefit is limited to the greater of the amount the deceased worker would be receiving if alive or 82.5% of the primary insurance amount (PIA).

⁶ The exact percentage depends on the survivor’s age when they begin collecting, starting at 71.5% at age 60 and going up to 100% at their own full retirement age. For further information, visit the Social Security Administration’s survivors benefits page.