Women are more likely than men to take time out of the workforce for childcare duties, particularly when childcare is unavailable or unaffordable.
Summary
Childcare responsibilities can significantly affect women’s workforce participation, career advancement, earnings, and overall economic well-being presenting new, tough choices for young families. This paper explores the financial considerations and stresses many working parents face and the related implications on long-term financial security.
Key Insights
- In addition to lost wages and diminished career growth, parental leave and time out of the workforce affects one’s ability to build retirement benefits like Social Security.
- Employees who plan on taking time off for childcare might consider maxing out retirement contributions early in their career.
- Through state-level action and certain federal programs, caregiving support is becoming a higher priority and key consideration for legislatures.
- Employer benefits that support caregiving can have meaningful positive effects on employees’ financial situations, while helping companies recruit and retain talent.
