Discussions around Social Security reform are gaining momentum, with potential changes aimed at providing financial relief to caregivers and older workers in physically demanding jobs. A recent survey by the National Academy of Social Insurance (NASI) suggests strong bipartisan backing for these proposals, reflecting growing public and legislative interest in improving benefits for these often-overlooked groups.
Expanding support for caregivers through a new credit
One of the key proposals under discussion is a caregiving credit for parents who leave the workforce to care for children under the age of six. Under the current Social Security system, individuals who take time off for caregiving responsibilities experience lower lifetime earnings, which translates into reduced benefits upon retirement. This issue disproportionately affects women, who make up the majority of unpaid caregivers.
The NASI survey found that nearly 60% of respondents support implementing such a credit. The proposal seeks to ensure that caregiving responsibilities do not result in long-term financial disadvantages in retirement.
“There seems to be a growing recognition among members of Congress on both sides of the aisle that families, especially those raising young children, need more support,” said Tyler Bond, research director at the National Institute of Retirement Security in Washington, D.C. The idea reflects a broader shift in public policy, acknowledging that caregiving is essential to both families and society at large.
A bridge benefit for older workers in physically demanding jobs
A second proposal under consideration involves the creation of a bridge benefit for older workers who have spent their careers in physically demanding occupations. Many of these individuals face health challenges that force them to retire early, often leading to reduced Social Security payments due to a lower number of earning years.
The NASI survey found that over 60% of respondents support this type of financial assistance. The bridge benefit would provide workers with additional financial security, ensuring that those who have spent decades in labor-intensive jobs are not penalized for retiring earlier than others.
This measure aligns with efforts to recognize the realities faced by workers in construction, manufacturing, and other physically demanding industries, where early retirement is often a necessity rather than a choice.
Public willingness to fund Social Security reforms
As discussions around Social Security reform continue, public sentiment suggests that Americans are open to funding these benefits through moderate tax adjustments. The NASI survey indicates strong backing for lifting the payroll tax cap on earnings above $400,000 and gradually increasing the payroll tax rate from 6.2% to 7.2% for both employees and employers.
“It is rare in today’s political climate to see people unite around anything, but virtually all Americans want their Social Security benefits to be preserved and are willing to do what it takes to ensure the program continues to provide meaningful support for future generations,” said Debra Whitman, chief public policy officer at AARP.
These funding adjustments aim to close the Social Security financing gap, ensuring the program remains sustainable in the long term while also creating a small surplus to support new benefits.
