Look out moms, motherhood’s tolls can push through to retirement.
Boston College’s Center for Retirement Research revealed in a new paper that mothers with one child receive on average 16% less Social Security benefit at age 62 than non-mothers. Keep note; every additional child reduces benefits by 2 percent or more.
These gaps are slightly due to parents and non-parents being opposite groups when it comes to working and retirement options, says co-author Mathew Rutledge, a research economist from the center. Mothers typically have a lower lifetime earnings sum due to unpaid time out of the workforce to nurture their children, and that comes at a financial penalty. Keeping everything else the same, the center discovered moms with one kid have a lifetime earnings sum that’s 28% less, with 3 percent less for each additional kid.