Bill Overview
Title: Senior Citizens Inflation Relief Act
Description: This bill temporarily 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. Posey, Bill [R-FL-8]
Target Audience
Population: People less than full retirement age receiving Social Security benefits
Estimated Size: 500000
- The bill specifically targets individuals who are less than the full retirement age.
- The individuals impacted are those who receive Social Security retirement benefits.
- The demographic term for individuals at or near retirement age is senior citizens.
- Social security benefits are a worldwide program, but the U.S. specific program impacts only American citizens or legal residents.
Reasoning
- The policy targets senior citizens who are below the full retirement age and receiving Social Security benefits. It allows them to earn more without facing penalties on their benefits, likely benefiting those with part-time jobs or small businesses.
- Impact will vary based on the individual's current financial status, employment situation, and reliance on fixed income.
- The budget constraints suggest a substantial number of beneficiaries, but not the entire demographic within this profile could benefit, so impact varies from none to high across individuals.
- For many, this policy could prevent financial penalties from accumulating if they choose or need to work beyond early retirement.
- Considering the policy's design and budget, it's likely to offer much-needed financial flexibility to many senior citizens, thus potentially improving their self-reported wellbeing scores significantly in the short to medium term.
Simulated Interviews
retired teacher (Florida)
Age: 64 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 15/20
Statement of Opinion:
- I appreciate being able to earn more from tutoring without losing part of my Social Security benefits.
- This policy could really help me make ends meet without worrying about the earnings limit.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 4 |
| Year 20 | 5 | 4 |
retired engineer (Texas)
Age: 63 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 10/20
Statement of Opinion:
- I can grow my consultancy business without worrying about the earning limits.
- It's a small but significant change that gives me more freedom.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 5 |
| Year 5 | 9 | 5 |
| Year 10 | 9 | 5 |
| Year 20 | 8 | 4 |
artist (California)
Age: 62 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 12/20
Statement of Opinion:
- I often worry about making too much from my art sales; this policy helps.
- It's comforting to know I can work freely without financial penalty.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 7 | 4 |
| Year 20 | 5 | 4 |
retailer (part-time) (New York)
Age: 65 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 1.0 years
Commonness: 18/20
Statement of Opinion:
- This policy will only affect me briefly as I’ll reach full retirement age next year.
- Even a short-term increase in allowable income is helpful.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 5 | 5 |
part-time accountant (Illinois)
Age: 60 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 13/20
Statement of Opinion:
- I was hesitant to take on more work due to earnings limits; this policy gives me flexibility.
- I appreciate being able to work without penalties.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 6 |
| Year 2 | 8 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 4 |
| Year 20 | 7 | 4 |
server (Ohio)
Age: 63 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 15.0 years
Commonness: 14/20
Statement of Opinion:
- This policy might mean I could pick up more shifts without fearing loss of benefits.
- Greater earnings flexibility is important for me.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 5 |
| Year 2 | 8 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 7 | 4 |
| Year 20 | 6 | 4 |
freelance writer (Washington)
Age: 61 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 11/20
Statement of Opinion:
- I need to manage my writing assignments carefully, this policy helps reduce that stress.
- It's a positive step towards allowing greater work flexibility for seniors.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 4 |
homemaker (Georgia)
Age: 64 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 18/20
Statement of Opinion:
- This policy doesn't have a direct impact on me since I haven't started collecting benefits yet.
- It's important for those who need to supplement their income.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
early retiree consulting (Arizona)
Age: 59 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 9/20
Statement of Opinion:
- The ability to earn more without penalties is a positive change.
- This policy directly benefits my consulting work allowing for growth.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 5 |
| Year 2 | 8 | 5 |
| Year 3 | 9 | 5 |
| Year 5 | 9 | 5 |
| Year 10 | 9 | 4 |
| Year 20 | 8 | 3 |
caregiver (Michigan)
Age: 62 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 12/20
Statement of Opinion:
- The increase in the earnings limit will ease my financial situation significantly.
- It's a good policy that acknowledges many seniors still wish or need to work.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 4 |
Cost Estimates
Year 1: $1500000000 (Low: $1200000000, High: $1800000000)
Year 2: $1550000000 (Low: $1250000000, High: $1850000000)
Year 3: $1600000000 (Low: $1300000000, High: $1900000000)
Year 5: $1700000000 (Low: $1400000000, High: $2000000000)
Year 10: $1800000000 (Low: $1500000000, High: $2100000000)
Year 100: $2000000000 (Low: $1700000000, High: $2300000000)
Key Considerations
- Potential complex interactions with Medicare and other benefit programs not accounted in direct costs.
- Incentive effects on labor force participation can boost economic activity modestly.