Americans Want to Increase Social Security Benefits for 2 Groups

A new proposal aims to increase Social Security benefits for two often-overlooked groups: caregivers and older workers with physically demanding jobs. This move comes as concerns over the program’s future grow.

Why It Matters

Social Security is a lifeline for millions of Americans, but its future remains uncertain. With the Social Security Administration projecting potential funding shortfalls in the coming decades, many retirees worry about reduced benefits. The 2023 Trustees Report indicates that the Old-Age and Survivors Insurance (OASI) Trust Fund will be able to pay full benefits only until 2033, after which it will only cover about 77 percent of scheduled benefits.

A recent survey conducted by the National Academy of Social Insurance (NASI), in collaboration with several advocacy groups, shows widespread concern, with 85 percent of Americans willing to raise taxes to secure the program’s longevity. This survey highlights the urgent need for reform and the strong public support for measures that will ensure the stability of Social Security while also including provisions to care for caregivers and older workers in physically demanding jobs.

What To Know

The NASI’s new public survey, conducted in collaboration with AARP, the National Institute on Retirement Security and the U.S. Chamber of Commerce, highlights broad bipartisan support for reforms aimed at strengthening the program. Key findings show that Americans across the political spectrum favor expanding benefits for specific vulnerable groups while also supporting measures to secure funding.

Caregiving credit for parents: One major proposal is the introduction of a caregiving credit for individuals who take time out of the workforce to care for children under six. Currently, these caregivers often receive significantly lower Social Security benefits because their earnings history is interrupted. This disproportionately affects women, who are more likely to take on primary caregiving roles. The proposed credit would help bridge this gap, ensuring that time spent caring for young children doesn’t penalize future retirement income.

Bridge benefit for older workers: Another key proposal is the creation of a bridge benefit for older workers with a history of physically demanding work. These individuals often face health challenges that force them into early retirement, resulting in reduced Social Security payments. The bridge benefit would protect them from the early retirement penalty, providing more equitable support based on the nature of their careers.

The NASI survey indicates that these proposals are popular among Americans of all political affiliations. Nearly 60 percent of respondents support the caregiving credit, and over 60 percent back the bridge benefit for older workers.

To fund these enhancements, the study suggests changes that 82 percent of respondents favored over current policies. This includes eliminating the cap on payroll tax contributions for earnings above $400,000 and gradually increasing the payroll tax rate from 6.2 percent to 7.2 percent for both employers and employees. These measures aim to address the long-term financing gap and ensure the sustainability of Social Security benefits.

Tyler Bond, research director at the National Institute on Retirement Security, told Newsweek that the report’s preferred policy package, supported by the public, fully closes the existing financing gap while generating a small surplus, even with targeted benefit increases. He also states it’s not the partner organizations (NIRS, Chamber, AARP, NASI) proposing this package, but the American public’s preference through survey research. He believes there’s growing congressional interest, especially in caregiver benefits, and the bridge benefit proposal for enhancing retirement security as many Baby Boomers reach retirement age.

What People Are Saying

Alex Beene, financial literacy instructor for the University of Tennessee at Martin, told Newsweek: “Over the last year, we’ve seen a flurry of promises made by legislators on altering and enhancing Social Security benefits. The idea of extending benefits to those who need them for temporary childcare and who have physically demanding work that has made waiting to employment to receive funds a tremendous difficulty is certainly welcome news to those in these groups who would qualify.

However, whether or not these take priority over other Social Security program changes remains to be seen. The idea of reducing or out-right eliminating taxes on Social Security benefits is a concept that’s picked up steam in recent months and that would appeal to a wider amount of recipients.

Still, the extension of benefits to groups that could desperately use them should be considered, especially if it financially works out. The greatest question will be in coming years if these constant changes will impact the solvency of the program.”

Kevin Thompson, founder and CEO of 9i Capital Group, told Newsweek: “…Expanding benefits to those who are not actively contributing increases the burden on Social Security funding. The system already provides spousal benefits, even for those who have never worked. Expanding this further could allow non-working spouses to claim benefits earlier while their working spouse delays, benefiting from the 8 percent annual increase in delayed retirement credits.”

“This is unlikely to be a congressional priority at the moment, as lawmakers already have a full agenda. They will likely defer this issue to a future administration, especially given that the projected insolvency of the Social Security trust fund is still seven to eight years away.

However, one area they could address now is reinstating Social Security taxation on incomes over $400,000. While this would help offset some of the system’s outflows, it remains politically challenging and unlikely to gain immediate traction. To be fair, no one truly knows what Trump will do. It wouldn’t be surprising if he saw this as a legacy-defining opportunity and positioned himself as the one who “solved the Social Security issue.”

Tyler Bond, research director at the National Institute on Retirement Security told Newsweek: “I do think there is interest in Congress on these two topics, especially providing a benefit for caregivers. 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. Vice President Vance was outspoken about this when he served in the Senate. While there are still a variety of different proposals being circulated about how to help working families, I do think there is an openness to hearing new ideas for how to recognize the crucial work done by caregivers.”

What Happens Next

While the proposal is gaining traction among policymakers, it remains uncertain if Congress will move forward with these changes. Instead, recent bills in Congress are focusing on ending taxes on Social Security.

Notably, Senators Roger Marshall and Marsha Blackburn introduced the Reducing Excessive Taxation and Inefficiencies by Reforming Elder Exemptions to Support Fairness, Inflation Relief, and Simple Taxes (RETIREES FIRST) Act. Additionally, Representatives Daniel Webster and Thomas Massie introduced the Senior Citizens Tax Elimination Act.

Update 2/11/25, 4:59 p.m. ET: This story was updated with comments from Tyler Bond, research director at the National Institute on Retirement Security.