Research Report A New Minimum Benefit for Low Lifetime Earners
Melissa M. Favreault
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Despite working hard and playing by the rules over long periods, many workers end up poor in retirement. We propose an enhanced minimum benefit for Social Security that targets long-career workers with low lifetime earnings along with a modest credit that compensates workers for up to three years out of the labor market due to caregiving, unemployment, or poor health. By combining these elements, the proposal provides work incentives, yet recognizes realities facing low-wage workers, many of whom have had intermittent work careers. We show that these proposed enhancements would allow more adults to retire with a secure financial foothold.
Research Areas Economic mobility and inequality Aging and retirement Social safety net
Tags Social Security Economic well-being Poverty Income and wealth distribution Retirement policy
Policy Centers Income and Benefits Policy Center