Opting out of the workforce affects future Social Security benefits
Lorie Konish of CNBC explains how the number of people who have opted out of the workforce for whatever reason during the COvid-19 pandemic are poised to receive drastically lower monthly Social Security benefits later in life. Women will be affected more, as they are the ones more likely to stay home due to family obligations. Benefits are calculated based on the highest 35 years of earnings from work, so any time less than that means a zero in the calculation. Reform proposals that include caregiver credits could help. A bill called the Social Security Caregiver Credit Act has also been proposed to address the issue. Read more here.