According to a fresh AARP-funded poll conducted by the National Academy of Social Insurance (NASI), a notable bipartisan majority of Americans support two group modifications to social security benefits.
With both Democrats and Republicans fervent supporters of social security, this attitude toward the program cuts beyond political boundaries.
The poll revealed two particular concerns that many respondents wish to be addressed: a caregiving credit for parents who miss out on income and thus receive lower social security payments and the creation of a ‘bridge benefit’ for older workers with a history of physically demanding job who often have to retire early.
About 60% support the bridge benefit for older workers and nearly 60% the caregiving credit.
The amount a person worked and paid taxes determines their social security benefits. This makes it challenging for women especially, but parents in general who find themselves temporarily staying home with their children miss out on those vital payments.
The same idea holds true for those who did physically hard jobs in their early years and thereby developed several long-term physical conditions related to their professions. A lesser social security payout also typically follows from early retirements and missed employment resulting from health issues and injuries.
With almost three-quarters of Republicans, nine out of ten Democrats, and eight out of ten independents backing this strategy, the AARP and NASI poll revealed that 85% of respondents believe benefit levels should be maintained or raised even if it means more taxes for some or all Americans.
A press release from the AARP reveals that many of the respondents stated they were all for raising taxes to support Social Security’s finances and stop a benefit drop in the next decade.
Debra Whitman, AARP’s chief public policy officer in a statement, said “it is rare in today’s political environment to see people unite around anything, but practically all Americans want their Social Security benefits to be preserved and are ready to do what it takes to ensure the program continues to provide meaningful support for future generations.”
When they passed a comprehensive reform bill including revenue increases (such as accelerating the payroll tax rate and making some benefit income subject to federal taxes) and benefit cuts (such as progressively raising Social Security’s full retirement age from 65 to 67), legislators in 1983 made the last significant changes to Social Security’s funding structure.
The 1983 statute was meant to preserve the trust funds solvent for 75 years at the time, but changes in economy and population have shortened this term. The Old- Age and Survivors Insurance (OASI) Trust Fund will only be able to provide full payments until 2033, beyond which it will cover around 77% of planned payouts per the 2023 Trustees Report.
The beneficiary population is rising faster than the workforce funding Social Security via payroll taxes as the birthrate declines and the “silver tsunami” of boomers reaching retirement age and living longer emerges.
Based on AARP’s tests, removing the maximum on payroll tax contributions for people making more than $400,000 annually is the most highly preferred alternative evaluated. Moreover, Americans of all stripes—including most Republicans—say they are ready to pay more themselves incrementally.