An estimated 59 million Americans provide care to family members, neighbors and friends each year, contributing roughly $1.01 trillion in unpaid labor — yet that work does not count toward Social Security benefits, leaving many caregivers with inadequate retirement security.
The gap stems from how Social Security calculates eligibility. Workers must accumulate at least 40 quarters (about 10 years) of paid employment to qualify for benefits, with payments based on highest-earning years. Caregiving often creates gaps in employment, delayed career starts and early workforce exits that prevent caregivers from meeting those thresholds.
A policy proposal gaining attention among some lawmakers and advocacy groups would create 'caregiver credits' within Social Security — credited earnings for individuals with reduced or interrupted paid employment due to caregiving responsibilities. The concept mirrors models used internationally, counting caregiving years toward benefits using a formula based on prior earnings or average wages.
What the Left Is Saying
Progressives and care advocates argue that recognizing unpaid caregiving in Social Security is long overdue. They contend that caregivers already subsidize public programs by reducing the need for institutional care, yet bear the full financial cost of that sacrifice in retirement.
Rep. Jan Schakowsky (D-Ill.) has co-sponsored legislation addressing caregiver recognition, stating that 'families who provide care should not be punished with poverty in their golden years.' The congresswoman argued that current policy effectively transfers caregiving costs from government programs to individual families without compensation.
AARP and the National Alliance for Caregiving have advocated for caregiver credits as a matter of economic justice. They point out that women — particularly women of color — provide the majority of care, live longer on average, and retire with fewer resources due to career interruptions that go unrecognized by the Social Security system. Black and Hispanic families already facing generational wealth gaps are more likely to take on intensive caregiving responsibilities with fewer financial protections.
Advocates argue the proposal would reduce long-term public spending by strengthening retirement security and decreasing reliance on means-tested programs like Medicaid, Supplemental Security Income and SNAP later in caregivers' lives.
What the Right Is Saying
Fiscal conservatives raise concerns about adding new obligations to Social Security at a time when the program's trust funds face depletion. The Congressional Budget Office has projected that Social Security will be unable to pay full benefits by 2033 without legislative action.
Rep. Jason Smith (R-Mo.), chairman of the House Ways and Means Committee, stated that 'any expansion of Social Security must be accompanied by reforms to ensure the program's long-term solvency.' The congressman has emphasized that new benefits require corresponding funding mechanisms or offsetting cuts elsewhere in the system.
Some conservative analysts argue that caregiver credits could create perverse incentives encouraging workers — particularly women — to leave the paid workforce, potentially worsening labor shortages and economic participation. They contend that targeted assistance through existing programs may be more fiscally sustainable than structural changes to Social Security.
The American Enterprise Institute has raised concerns about means-testing implications, noting that expanding benefits for one group while the program faces insolvency could strain resources available for all beneficiaries.
What the Numbers Show
AARP estimates Americans provided 49.5 billion hours of unpaid care in 2024 — equivalent to the annual output of approximately 23.8 million full-time workers. The estimated value of that unpaid labor: $1.01 trillion annually, exceeding combined federal, state and local Medicaid spending.
According to Social Security Administration data, women receive an average of $14,500 in annual Social Security benefits compared to $21,000 for men — a 31 percent gap largely attributed to career interruptions for caregiving. Black beneficiaries receive average monthly payments of $1,480 compared to $1,650 for white beneficiaries.
The Social Security trustees' 2025 report projected the program faces a $22.2 trillion unfunded liability over 75 years. Any expansion would require legislative action to address funding mechanisms.
AARP research indicates that caregivers who leave the workforce reduce their lifetime earnings by an average of $115,000 and receive significantly lower retirement benefits as a result — costs that later manifest in greater reliance on public assistance programs.
The Bottom Line
The debate over caregiver credits reflects broader tensions between Social Security's original design based on paid employment and the reality that millions of Americans provide essential unpaid care each year. Advocates say recognizing caregiving labor is both an equity issue and a fiscal necessity, while critics warn that adding benefits to an already strained system requires careful consideration of funding sources.
What happens next: The proposal has gained traction in Democratic circles but faces significant hurdles in Congress given Social Security's precarious financial position. Any legislation would need to address both the expansion of benefits and mechanisms to fund them — a combination that has historically proven difficult to achieve. Watch for hearings in the House Ways and Means Committee this spring as lawmakers explore bipartisan approaches to strengthening retirement security for caregivers.