A potential increase in Social Security benefits would be a welcome change for the nearly 70 million Americans who rely on these payments for their monthly expenses. For many beneficiaries, Social Security is a financial lifeline, covering at least 50% of their living costs.
A recent survey by the National Academy of Social Insurance found strong public support for raising benefits for two specific groups: caregivers and older workers in physically demanding jobs.
While this increase could significantly help those in need, it raises concerns about the long-term stability of the Social Security fund, which is projected to be depleted by 2033 unless action is taken.
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Social Security’s Role
With the average monthly Social Security payment just under $2,000, many recipients depend on these funds to stay afloat. Given that a large portion of beneficiaries rely on these payments as their primary income source, any increase in benefits would provide much-needed relief.
However, Social Security’s future funding is uncertain. Without changes, the retirement fund may only be able to pay 79% of scheduled benefits by 2033. To address this issue, lawmakers are considering raising taxes or adjusting benefits.
Benefits
Despite concerns about the longevity of the fund, the survey found strong public support for expanding Social Security benefits for two groups.
Caregiving Credit
One of the biggest proposals is the introduction of a caregiving credit for individuals who leave the workforce to care for children under six.
- Currently, caregivers receive lower Social Security benefits because their earnings history is interrupted.
- This issue disproportionately affects women, as mothers are more likely to take on caregiving roles.
- A caregiving credit would ensure that these individuals do not lose out on future Social Security benefits despite taking time off work.
Bridge Benefit
Another proposed change focuses on older workers in physically demanding jobs who are often forced into early retirement.
- Many of these workers cannot continue working until 70, which reduces their total Social Security benefits.
- A bridge benefit would provide additional support so these workers do not face financial hardship due to an early retirement caused by the physical demands of their jobs.
Fund These Proposals
One of the main challenges in raising Social Security benefits is figuring out how to pay for them. The survey found strong support for two major funding solutions.
| Proposed Funding Solution | Public Support |
|---|---|
| Removing the payroll tax cap on earnings above $400,000 | 82% support |
| Raising the payroll tax rate from 6.2% to 7.2% for employers and employees | Majority support |
If implemented, these changes would not only extend the life of the Social Security fund but also make it possible to increase benefits for caregivers and physically demanding workers.
Moving Toward
The idea of expanding Social Security benefits has gained significant attention, with financial experts and policymakers debating how best to support vulnerable beneficiaries.
According to Alex Beene, a financial literacy instructor at the University of Tennessee, these proposals would provide much-needed relief to those struggling with caregiving responsibilities and physically demanding jobs.
While no final decision has been made, the strong public support for these changes suggests that reforming Social Security remains a high priority for many Americans.
FAQs
Who would benefit from the Social Security increase?
Caregivers and older workers in physically demanding jobs.
Why is Social Security funding a concern?
The fund is projected to be depleted by 2033 without changes.
How could Social Security benefits be funded?
By removing the payroll tax cap and slightly increasing payroll taxes.
What is the caregiving credit proposal?
It would provide Social Security credit to parents who leave work to care for young children.
What is the bridge benefit for older workers?
It would help those in physically demanding jobs retire earlier without losing benefits.
