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 and Evidence Tax and Income Supports Technology and Data
Expertise Upward Mobility and Inequality Social Safety Net Microsimulation Modeling Aging and Retirement
Research Methods Dynamic Simulation of Income Model 4 (DYNASIM4)
Tags Social Security Economic well-being Poverty Income and wealth distribution Retirement policy