Poll: Living Longer, Women Retirees Could Spend 70 Percent of their Social Security Benefit Paying for Health Care Costs

On average, women live longer, meaning they spend more time in retirement and often do so with less savings. Due to these factors, women retirees could spend on average I70 percent of their Social Security benefit on health care costs.

According to a Nationwide Retirement Institute survey conducted by the Harris Poll, women count on Social Security or will count on it to pay, on average, 56 percent of all their expenses in retirement. However, 80 percent of retired women currently collecting Social Security benefits took those benefits early, locking in a lifetime of lower income.

The online survey included 465 women over age 50 who are retired or plan to be in the next 10 years. It found that of women currently collecting Social Security, only 17 (5 percent) maximized their monthly check by waiting to claim at age 70 or later.

“Too many women retirees have no retirement income outside of Social Security,” said Roberta Eckert, vice president of the Nationwide Retirement Institute. “And even for women that do, the fact that they live longer makes maximizing Social Security benefits extremely important.”

More than a third of women (35 percent) were kept from doing the things they wanted in retirement. Health care expenses in particular keep nearly one in four (24 percent) from the retirement they desired.

Looking back, 17 percent of women who are currently drawing Social Security wish they could change their decision and file later. Of those who would not change their filing decision, 39 percent say an unforeseen life event compelled them to take it early, including unplanned health problems (17 percent).

Women Want Help with Social Security Filing Options

More than one in four women currently drawing Social Security (30 percent) say their Social Security payment is less than they expected.

Women who have yet to collect Social Security can expect to receive an average $1,527 in monthly benefits. On average, women retirees are currently collecting $1,153 and those who started taking Social Security early report receiving just $1,084.

Only 13 percent of women say they received advice on Social Security from a financial advisor. However, nearly nine in 10 women surveyed who work with an advisor (86 percent) say their Social Security payment was as expected or more than they expected.

“There are a variety of efficient filing strategies open to women — but too few seek professional advice to take advantage of them,” said Kevin McGarry, director of the Nationwide Retirement Institute.

Nationwide Investment Service Corporation (NISC), member FINRA. Nationwide Retirement Institute is a division of NISC.