The current benefit rules of the Social Security system favor not only low earners but also survivors, spouses, and divorcees who have no or limited earnings. Women's Social Security benefits are lower than men' s benefits, due to their lower earning levels. Women earn only 70 cents to every dollar men earn for similar work. Women tend to be out of the workforce more often, and to hold part-time jobs, particularly during childbearing years. This results in lower Social Security benefits for women than men.
Privatization only exacerbates the pension disparity.
On average, men's pension funds are twice the size of women's pension funds . Women also make more conservative investments when they invest their retirement savings themselves. Women, ages 51 to 61, invest a lower percentage of their total assets in stocks, mutual funds, and investment trusts than men had. These assets are riskier, but have higher yields than others, such as certificates of deposits, savings accounts, or government bonds. On average, the ratio of riskier assets to total assets held by men was 8 percentage points higher than the same ratio for women.