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Understanding Social Security’s “COVID-19 Notch”

The American economy’s devastation at the hands of the COVID-19 pandemic has created an extraordinarily negative situation for some working families, says The Hill opinion contributor Nancy Altman. This situation has been labeled the “COVID-19 notch” and basically is the result of the drop in wages occurring as a result of the rampant layoffs and furloughs inflicted on workers turning 60 this year. Specifically, these workers, estimated to encompass about four million, will see a substantially lower earnings level baked into their basic Social Security calculation, since the calculation includes earnings over a 35-year period. Ms. Altman’s post  explains the origin of the notch issue, and offers conjecture on a resolution. Read her thehill.com post here…

 

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