| The US Department of Labor estimates that almost | | | | amount, or "primary insurance amount," PIA. Obviously, |
| 90% of women will end up solely responsible for their | | | | if you have several years of zero or low earnings, that |
| financial well being. Given that women tend to earn | | | | is going to bring down your PIA. One way to increase |
| less than men over their lifetimes to begin with, and | | | | your benefit, if you are now earning a higher wage is |
| may spend a good deal of time out of the workforce | | | | to stay in the workforce long enough to replace those |
| to care for families, women facing retirement may | | | | years with your current higher earnings. This is |
| have fewer retirement resources, maximizing Social | | | | especially important for a never married woman. |
| Security benefits available is critical. | | | | When it comes time to collect Social Security, if you |
| The first thing for women (and men for that matter) to | | | | are married, you can either claim your own benefit, or |
| understand is how Social Security benefits are | | | | 50% of your spouse's, whichever is greater. If you are |
| calculated in the first place. To be eligible for Social | | | | divorced, and were married for at least ten years, you |
| Security, you need to have been employed in a job | | | | can still claim based on his earnings, as long as you are |
| that participates in the Social Security system for | | | | 62 or older and still unmarried, regardless of whether |
| about 10 years. The benefit amount is calculated | | | | he has started receiving benefits yet or not. It doesn't |
| based on your highest 35 years of earnings, indexed | | | | matter if you haven't seen your ex-husband for many |
| for wage increases over the years. If you haven't | | | | years; you can apply without his knowledge or |
| worked for 35 years, years you were out of the | | | | consent; no messy conversations asking for his |
| workforce will count as zero, and naturally bring the | | | | earnings records necessary! You do have to be |
| average down. On the other end, earnings are capped | | | | divorced at least two years though, and he has to be |
| at an amount determined annually, and earnings only | | | | eligible for benefits and at least age 62. If you wait until |
| count up to that amount, no matter how high they may | | | | your full retirement age, you will receive 50% of his |
| be. In 2010 that cap is $106,800. Those 35 years of | | | | benefit, but if you claim benefits at age 62, you can |
| earnings are then converted to a monthly amount, to | | | | only receive 35%. It doesn't matter, either, how many |
| come up with your "average indexed monthly | | | | ex-wives your husband has; they all can claim on his |
| earnings," or AIME. That number then goes through a | | | | record, without affecting the other ex's. |
| calculation to come up with your monthly benefit | | | | |