Americans Push for Increased Social Security Benefits for Two Key Groups

A new proposal seeks to enhance Social Security benefits for two often-overlooked groups: caregivers and older workers engaged in physically demanding jobs.

This initiative comes at a time when concerns about the future of the Social Security program are intensifying.

Why This Proposal Matters

Social Security plays a crucial role in the financial well-being of millions of Americans, but its future is increasingly uncertain.

According to the Social Security Administration, funding shortfalls are projected over the next few decades, causing anxiety among retirees about the potential reduction of their benefits.

The 2023 Trustees Report states that the Old-Age and Survivors Insurance (OASI) Trust Fund will be able to fully pay benefits only until 2033. After that, it will cover just 77 percent of scheduled benefits.

A survey by the National Academy of Social Insurance (NASI), in collaboration with several advocacy organizations, found that 85 percent of Americans are willing to accept higher taxes to ensure the program’s sustainability.

This survey highlights the urgency for reform and strong public backing for measures that will not only stabilize Social Security but also offer increased support to caregivers and older workers in physically demanding fields.

Key Highlights of the Proposal

The new public survey conducted by NASI, in partnership with groups like AARP, the National Institute on Retirement Security, and the U.S. Chamber of Commerce, reveals widespread bipartisan support for reforms aimed at strengthening Social Security.

Key findings show that Americans across all political affiliations favor expanding benefits for vulnerable groups while simultaneously supporting funding measures to secure the program’s future.

Caregiving Credit for Parents

One prominent proposal is the introduction of a caregiving credit for individuals who take time off work to care for children under the age of six. Currently, caregivers—especially women—are disproportionately affected by interrupted careers, leading to lower Social Security benefits.

The new caregiving credit would address this issue, ensuring that time spent caring for young children doesn’t result in diminished retirement income.

Bridge Benefit for Older Workers

Another significant proposal is the creation of a bridge benefit for older workers engaged in physically demanding jobs. Many of these workers face health issues that force them into early retirement, which typically results in a reduction of Social Security benefits.

The proposed bridge benefit would help these workers avoid the penalty for early retirement, offering them more equitable support based on the physical toll of their careers.

According to the NASI survey, these proposals are highly popular, with nearly 60 percent of respondents supporting the caregiving credit, and over 60 percent backing the bridge benefit for older workers.

Funding the Proposed Changes

To fund these proposed changes, the survey suggests policy shifts that 82 percent of respondents favor. These adjustments include:

• Eliminating the cap on payroll tax contributions for earnings over $400,000.
• Gradually increasing the payroll tax rate from 6.2 percent to 7.2 percent for both employers and employees.

These measures are designed to address the long-term financing gap in Social Security and ensure that benefits remain sustainable.

Proposal	Supported by (%)	Key Features
Caregiving Credit	60%	Credit for parents who take time off to care for young children
Bridge Benefit	60%	Benefit for older workers in physically demanding jobs to avoid early retirement penalties
Payroll Tax Changes	82%	Eliminate cap on earnings over $400,000 and gradually raise payroll tax rates

What Experts Are Saying

Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, expressed support for the proposal, stating that extending benefits to those who need them due to childcare or demanding work would be a welcome development.

However, he noted that these changes could affect the solvency of the program and questioned whether they would take precedence over other reforms.

Kevin Thompson, CEO of 9i Capital Group, cautioned that expanding benefits for non-contributing individuals could increase the burden on Social Security. He highlighted that the system already provides spousal benefits for individuals who have never worked.

While he believes the focus should be on addressing income over $400,000, he acknowledged the difficulty in making immediate progress on such policies.

What Happens Next

The proposal has garnered attention from policymakers, but it remains unclear whether Congress will act on these changes. Recently, other bills, such as the RETIREES FIRST Act, introduced by Senators Roger Marshall and Marsha Blackburn, focus on eliminating taxes on Social Security.

Additionally, Representatives Daniel Webster and Thomas Massie have proposed the Senior Citizens Tax Elimination Act, which aims to eliminate taxes on Social Security benefits.

The proposed changes to Social Security benefits for caregivers and older workers in physically demanding jobs highlight the urgent need for reform in the face of projected funding shortfalls.

While these proposals have garnered widespread support, particularly for expanding benefits to vulnerable groups, the road ahead remains uncertain.

Addressing funding gaps, especially through changes to payroll taxes, will be key to ensuring the long-term viability of the Social Security program. As Congress continues to evaluate these proposals, the future of Social Security remains a critical issue that will impact millions of Americans.

FAQs

What is the caregiving credit?

The caregiving credit would provide additional benefits for parents who take time off work to care for children under the age of six. This would prevent their future Social Security benefits from being reduced due to interrupted work history.

Who would benefit from the bridge benefit?

The bridge benefit would support older workers who have spent their careers in physically demanding jobs. It would prevent them from facing reduced benefits due to early retirement resulting from health challenges.

How will these proposals be funded?

The proposals suggest eliminating the cap on payroll tax contributions for high earners and gradually raising the payroll tax rate from 6.2 percent to 7.2 percent.