Bill Overview
Title: Senior Independence Act of 2022
Description: This bill increases the amount of income that individuals who are less than the full retirement age may earn without incurring a reduction in their Social Security retirement benefits.
Sponsors: Rep. Grothman, Glenn [R-WI-6]
Target Audience
Population: Seniors under the full retirement age earning an income while receiving Social Security benefits
Estimated Size: 10000000
- The bill impacts seniors who are below the full retirement age.
- It specifically targets those who are earning income and receiving Social Security benefits.
- The full retirement age varies but is generally around 66 to 67 depending on birth year.
- There are approximately 46 million people aged between 62 and the full retirement age in the US, out of the global population of seniors in this age range.
- A portion of US seniors in this age group are working, which is significantly higher than the global estimate due to economic structures.
Reasoning
- The target population is seniors under the full retirement age who are earning income while receiving Social Security. This group is substantial, totaling approximately 10 million in the US based on labor force participation rates.
- Our policy budget needs to cater to this group without surpassing the set limits. A focus on varying individual circumstances (e.g., health, type of employment, socio-economic background) is crucial to simulate a range of impacts from high to none.
- While some seniors may benefit greatly from increased income retention (those in part-time or flexible work arrangements), others with stable non-earned incomes might see little impact.
- The US economic environment and labor force characteristics suggest a reasonable number of seniors stil engage in paid work beyond typical retirement age conditions. This policy essentially provides support by reducing penalties for these seniors.
Simulated Interviews
part-time retail worker (Ohio)
Age: 64 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 14/20
Statement of Opinion:
- I'm glad to be able to work without being penalized. It's hard enough balancing my health and expenses.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 6 | 5 |
consultant (Florida)
Age: 63 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 11/20
Statement of Opinion:
- This change will help me make the most of my skills without worrying as much about crossing earnings limits.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 5 |
caregiver (California)
Age: 66 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- Any extra income I can keep is a huge help with my family's needs.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 4 |
semi-retired engineer (Texas)
Age: 62 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 13/20
Statement of Opinion:
- This doesn't change much for me, but I appreciate the support.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
freelance writer (New York)
Age: 65 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- Being able to work freely without worrying about the cap makes my life easier.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 7 | 6 |
school bus driver (Michigan)
Age: 64 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 12/20
Statement of Opinion:
- This policy is a nice bonus for keeping me comfortable while I work.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 5 |
tech support (Illinois)
Age: 63 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 15/20
Statement of Opinion:
- I'm glad I can keep working without worrying about penalties.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 5 |
retail assistant (Georgia)
Age: 62 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 16/20
Statement of Opinion:
- With costs rising, not losing benefits by working more is relieving.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 4 |
part-time driver (North Carolina)
Age: 65 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 7.0 years
Commonness: 9/20
Statement of Opinion:
- I'm working just as much as before but appreciate not being penalized.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 5 |
part-time clerical worker (Washington)
Age: 64 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- This policy takes away some of the stress about earnings.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 4 |
Cost Estimates
Year 1: $5000000000 (Low: $4500000000, High: $5500000000)
Year 2: $5100000000 (Low: $4590000000, High: $5610000000)
Year 3: $5202000000 (Low: $4681800000, High: $5722200000)
Year 5: $5408080000 (Low: $4867272000, High: $5948888000)
Year 10: $5812676160 (Low: $5231408544, High: $6393943776)
Year 100: $100000000000 (Low: $90000000000, High: $110000000000)
Key Considerations
- The bill aims to increase income flexibility for working seniors, potentially improving their financial stability.
- Long-term sustainability of Social Security funds may be affected by increased benefit payouts.
- The measure could encourage more part-time employment among seniors, influencing labor market dynamics.