Social Security Could Increase for Millions of Parents Under New Bill
Summary
A new bill in Congress called the Social Security Caregiver Credit Act of 2026 aims to give parents and caregivers credit on their Social Security benefits for time spent caring for children or dependent relatives without pay. This change could increase retirement payments for millions of people who took time off work to provide unpaid care.Key Facts
- The bill was introduced by Representative Brad Schneider, a Democrat from Illinois.
- It would allow parents who stayed home to raise children to receive Social Security credits even if they did not earn wages during that time.
- Caregivers could receive credit for up to 60 months (five years) of unpaid care.
- The bill also includes caregivers who care for a disabled spouse, elderly parent, or grandchildren (if they are under retirement age).
- Currently, Social Security benefits are based on the 35 highest-earning years, so unpaid caregiving years usually lower benefits.
- Similar caregiving pension credits exist in countries like Germany, Canada, and Sweden.
- The number of stay-at-home parents in the U.S. has risen slightly in recent years due to rising childcare costs.
- Childcare cost is a leading financial stress for many younger parents, especially millennials and Gen Z.
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