Millions of Americans depend on Social Security to cover their monthly expenses. With the average beneficiary receiving just under $2,000 per month, these payments are a lifeline for retirees, disabled individuals, and low-income recipients. A recent survey by the National Academy of Social Insurance has highlighted strong support for increasing benefits for two specific groups of Social Security recipients. While the potential changes would be welcomed, concerns about the long-term sustainability of the Social Security fund remain.
Table of Contents
Lifeline
Social Security plays a crucial role in preventing financial hardship for beneficiaries. Many recipients rely on these payments for at least 50% of their income, making any potential increase a significant help. However, the Social Security trust fund is projected to be depleted by 2033, meaning benefits could be cut by 21% unless Congress takes action. Lawmakers are currently considering solutions such as increasing payroll taxes or reducing benefits in advance to extend the program’s longevity.
Survey Findings
A new survey highlights strong public support for increasing benefits for two vulnerable groups: caregivers of young children and older workers in physically demanding jobs.
Caregiving Credit
The first proposed change would introduce a caregiving credit for parents who leave the workforce to care for children under six years old. Currently, Social Security benefits are based on lifetime earnings, meaning those who take time off to raise children often receive lower benefits later in life.
This disproportionately affects women, who are more likely to take on caregiving roles. If enacted, the credit would ensure that these individuals do not suffer financially in retirement simply because they prioritized family responsibilities.
Bridge Benefit
The second proposed change focuses on workers in physically demanding jobs, such as construction, factory work, and manual labor. Many of these workers retire early due to the physical toll of their jobs, but this results in lower benefits since Social Security rewards delayed retirement. A proposed bridge benefit would help fill the gap, ensuring these individuals receive adequate financial support even if they cannot work until full retirement age.
Funding Solutions
One of the biggest challenges to increasing Social Security benefits is ensuring the fund remains solvent. Survey respondents overwhelmingly supported two key changes to address this issue:
- Removing the payroll tax cap – Currently, only wages up to $400,000 are subject to Social Security taxes. Eliminating this cap would require higher earners to contribute more, generating additional funds for the program.
- Increasing the payroll tax rate – Raising the Social Security tax rate from 6.2% to 7.2% for both employers and employees could help sustain the program while funding the proposed benefit increases.
Expert Insights
Speaking to Newsweek, financial literacy instructor Alex Beene noted the importance of expanding benefits for caregivers and physically demanding workers. He pointed out that lawmakers have made numerous promises about strengthening Social Security, and these proposals could provide much-needed relief to those who need it most.
While these potential changes would be beneficial, Congress still needs to take action to ensure Social Security remains financially stable for future generations. If lawmakers move forward with these proposals, it could mark a significant step toward making Social Security more equitable and sustainable.
FAQs
Who would benefit from these Social Security changes?
Caregivers of young children and workers in physically demanding jobs.
Why is the Social Security fund at risk?
It is projected to be depleted by 2033, leading to benefit cuts.
How could these benefit increases be funded?
By removing the payroll tax cap and raising the payroll tax rate.
Will Congress approve these changes?
Congress is still debating potential solutions for Social Security.
How much do Social Security recipients currently receive?
The average monthly benefit is just under $2,000 per recipient.
