The income you earn before retirement is vital for your social security benefits.
Due to this reason, Social security is self-sufficient for some people while for others its not.
The amount of money you earn will impact the contributions you make to your Social Security fund.
If your earnings are higher so your contributions at the end your benefits when you retire.
The difference between the paycheck effects two retirees with same working hours and years but different benefits for both.
This helps explain why women's Social Security checks are less.
Men averaged $1,848 each month as of May 2022, according to USA Today.
While Women only managed to get $1,494 per month, a gap of $354 per month or $4,248 annually.
Imagine how that gap builds up over retirement: A male will get $85,000 more in Social Security payments over 20 years than a woman.
The difference is as high as $127,000 over 30 years.
You don't need any economics degree to figure it out.
Because women have earned less than men for decades, and the pay gap persists.
As per the Society for HR Management, women earned 82 cents for every dollar men earns in 2022.
Women are more likely to care for children than men. They also take maternity leaves etc.
These zero-income years are put into the benefit calculation, which ultimately reduces checks.
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