Social Security also provides higher lifetime benefits to workers who live longer. By the time a worker retires, benefits are granted on the basis of a workers age and earnings history. Because women have significantly higher life expectancies than men, they will receive the same monthly Social Security benefits than men. Social Security is particularly important to women. Women have fewer earnings to rely on in retirement.
Women of color are even less likely to have a pension than are white women.
Furthermore, a woman's pension is typically smaller than a man's because women earn less per hour, and often work part time or spend time out of the labor force. Since women live in retirement an average of three and a half years more than men, they need more retirement income over the course of their lives, not less. Given their longer life spans, it is especially important for women that Social Security benefits be adjusted each year for inflation. A woman who never worked but stayed home to care for family is still entitled to a Social Security benefit equal to half that of her working husband. Most of the money that is needed to pay for benefits comes from payroll taxes.