Mitigating the “Motherhood Gap” in Social Security Benefits
The working history of females tends to differ over time, specifically with respect to the bearing of children. Statistics show that female workers without children tend to realize a higher benefit as a result of not experiencing interruptions in work and earnings history, and thereby compiling a higher average indexed monthly earnings (AIME) figure when they file for benefits. While the decision to leave the workforce to raise children certainly is a personal life choice, there are ways to lessen the impact of the earnings history gaps. As explained by CNBC’s Personal Finance and Consumer Spending Reporter Kelli B. Grant in an article posted on www.cnbc.com, it’s important to maintain some level of continuity in earnings, perhaps via part-time or contract work, to eliminate the zero income years in the AIME calculation. Her suggestions are covered in the article, which can be accessed here…
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