What does a career break for caregiving actually cost?

Women & wealth

A 5-year career break in your 30s for caregiving costs the average woman roughly $467,000 in lifetime wages, lost retirement savings, foregone Social Security credits, and missed promotions. The career-break recovery plan starts before you take the break.

The four buckets of cost

1) Direct wages lost during the break. 2) Lost 401(k) contributions and employer match. 3) Lower lifetime Social Security benefits (calculated from your highest 35 years). 4) Career trajectory, lower re-entry salary and slower promotion velocity.

What recovery looks like

Maximize a spousal IRA every year you're not working ($7,000 in 2026, plus $1,000 catch-up at 50+). Plan a re-entry salary negotiation that accounts for the gap. Use the lower-income years for Roth conversions if you have prior pre-tax balances.

The decisions that meaningfully reduce the cost

Negotiating partial work or contract roles during the break. Keeping employer benefits where possible. Documenting your role to ease re-entry. Maintaining LinkedIn and professional contacts.

What people often get wrong

Skipping the spousal IRA every year of the break
Not negotiating re-entry salary to reflect prior trajectory
Forgetting that Social Security uses your top 35 earning years (zero years count as zeros)

What to think about next

Open and fund a spousal IRA each break year.
Track your projected Social Security benefit and identify zero-earning years.
Plan re-entry salary using a market study, not your last paycheck.

When to consider working with a CFP®

Working with a CFP® can help when these decisions feel intertwined, taxes, investments, cash flow, and life goals tend to move together, and a planning relationship can offer structure, prioritization, and accountability over time.

Frequently Asked Questions

Do part-time earnings during the break still count for Social Security?

Yes. Even a low-earning year replaces a $0 in your top-35 calculation. Some income is meaningfully better than none.

Talk to a CFP® who works with high earners.

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