Social Security’s Caregiver Gap

Caregiving can come at a retirement cost, but smart planning may help protect your future Social Security benefits.

A few years away from work can cost caregivers thousands in Social Security benefits over retirement. Halfpoint/shutterstock

It’s often touted that women earn an average of 85 percent of what men earn, often because of career choices that do not maximize earnings, according to Pew Research. But beyond the lower pay, women are more likely to leave the workforce to provide caregiving for children or aged parents. The combination of the two can create financial hardship at retirement.

According to Forbes, 455,000 women exited the U.S. workforce between January and August of 2025. Forty-two percent of these women left the workforce because of caregiving responsibilities.

The result of this exodus of women contributes to the limited availability of Social Security benefits. These lesser benefits at retirement are referred to as the caregiver’s gap.

The 35-Year Rule

According to the Social Security Administration (SSA), benefits are typically computed using average indexed monthly earnings (AIME). This is an average and summarizes up to 35 years of your indexed earnings.

The SSA uses the formula to compute the primary insurance amount (PIA).

The ‘Zero Year’ Penalty Hurts Caregivers

If you stop work, even for a short period, and end up with fewer than 35 years of earnings, your benefit amount is affected, according to the SSA.

That’s because the SSA uses a zero for each year without earnings when it calculates the amount of retirement benefits due to you. Years without earnings reduce your retirement benefit amount.

Even a single zero-income year folded into a 35-year average can reduce your benefit enough to cost you thousands of dollars over the course of a 20-year or longer retirement.

According to Fortune, the average caregiver leaves the workforce for approximately six years, so those years are not counted toward Social Security benefits.

Part-Time Caregivers Also Hurt

You may not have left the workforce entirely, but even if you work part-time, you may not qualify for benefits. According to the SSA, you must have at least 40 credits to be eligible for benefits. You must earn $7,560 to receive the maximum four credits for the year, and you will not receive Social Security benefits if you don’t have enough credits.

Legislation Proposed for Caregivers

Several congressional bills have been proposed to address different aspects of the caregiver gap. These include expanding Social Security benefits or relaxing rules on Roth IRA contributions.

Social Security Caregiver Credit Act

In April 2026, senators and representatives introduced the Social Security Caregiver Credit Act, S. 4396. The bill was introduced by Sens. Chris Murphy (D-Conn.) and Kirsten Gillibrand (D-N.Y.) and sponsored by Rep. Bradley Scott Schneider (D-Ill.).

It would amend Title II of the Social Security Act to credit individuals who serve as caregivers for dependent relatives with deemed wages for up to five years of service.

To be eligible, caregivers would need to spend at least 80 hours per month providing care to a dependent child or chronically ill relative.

The increase in benefits that the Social Security Caregiver Act would provide wouldn’t be paid as a lump sum. It would show up as a higher monthly Social Security check when you retire. It could also be a higher disability or survivor benefit if either applies.

The bill is in the first stage of the legislative process and will likely need to be considered by the Ways and Means Committee of Congress before it is potentially sent on to the House or Senate as a whole, according to GovTrack.

Improving Retirement Security for Family Caregivers Act of 2026

Another proposed bill in April 2026 is the Improving Retirement Security for Family Caregivers Act. Sponsored by Rep. Brittany Pettersen (D-Colo.), this bill would ease Roth IRA contribution rules for caregivers.

To qualify, the term “qualified caregiver” means an individual who during a taxable year has completed 500 or more hours as a family caregiver and has completed fewer than 500 hours of paid employment. This includes self-employment. The caregiver must not have been compensated for his or her caregiving activities.

Catching Up Family Caregivers Act of 2026

Pettersen also sponsored the Catching Up Family Caregivers Act. This bill would allow caregivers to catch up on contributions to Roth IRAs. According to the IRS, the current age to make catch-up contributions is age 50 or older.

To qualify, the individual must have completed 500 or more hours as a family caregiver and have fewer than 500 hours of paid employment, including self-employment. The caregiver must not have been compensated for his or her caregiving activities.

How to Close the Caregiver Gap

Besides waiting for new laws to be passed. There are other ways to help you fill the caregiver gap.

Consider formalizing your work through Medicaid self-directed care programs or state-sponsored family caregiver programs.

If the care is documented as W-2 wages or self-employment, you’ll pay FICA taxes. This will also allow you to earn the necessary work credits for Social Security.

If possible, you could at least continue working part-time. This may allow you to earn enough to reach the annual limit of four credits. Earning those credits would ensure you accumulate enough to qualify for Social Security benefits.

Another strategy to help offset lower average lifetime earnings is to delay your retirement benefit claim until full retirement age (FRA). According to the IRS, depending on your birthday, this is age 67. Delaying until up to 70 will give you the maximum monthly payout.

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