Social Security is a key component of people's retirement income. According to the Center on Budget and Policy Priorities, women get almost half of the benefits of the program while paying just 41% of payroll taxes.
In the following video, Dan Caplinger, the Fool's director of investment planning, discusses the center's look at women and Social Security in an effort to explain the center's findings. Dan notes the center's findings that women on average have lower lifetime earnings than men, allowing women to benefit from Social Security's progressive formula for calculating benefits. Moreover, Dan observes that women have longer life expectancies, thereby receiving payments for a longer period of time. He talks about how Metlife (NYSE: MET ) , Prudential (NYSE: PRU ) , Genworth Financial (NYSE: GNW ) , and other annuity providers typically have different payouts for men and women, but Social Security pays the same amount regardless of gender. Finally, Dan discusses the impact of survivors' and spousal benefits on the total amount that women get from Social Security.
How everyone can get more from Social Security
Both women and men can take steps to boost their benefits from Social Security by making just a few smart decisions. In our brand-new free report, "Make Social Security Work Harder For You," our retirement experts lead you through some of the steps to consider in getting everything that you deserve from Social Security. Click here to get your copy today.