Two recently introduced congressional bills aim to improve retirement security and help address the financial challenges faced by individuals who leave the workforce to care for loved ones.
U.S. Reps. María Elvira Salazar (R-FL) and Brittany Pettersen (D-CO) on Sept. 23 introduced both the Improving Retirement Security for Family Caregivers Act, H.R. 9765, and the Catching Up Family Caregivers Act of 2024, H.R. 9764. U.S. Sens. Susan Collins (R-ME) and Mark Warner (D-VA) introduced their chamber’s versions of the bills.
“Caregiving is one of the most important jobs, but our current policies penalize selfless Americans who look after their loved ones,” said Salazar Oct. 30. “I’m proud to co-lead the Improving Retirement Security for Family Caregivers Act and the Catching Up Family Caregivers Act, which will reward caregivers with new opportunities to secure a dignified retirement.”
If enacted, the bipartisan, bicameral Improving Retirement Security for Family Caregivers Act would allow family caregivers to contribute up to $7,000 annually to a Roth IRA, even if their income falls below that threshold.
Current law caps contributions at the lower of $7,000 or yearly income, limiting caregivers’ ability to save for retirement when their earnings are reduced due to caregiving responsibilities. By eliminating this income cap for family caregivers, the bill would help to ensure that they can continue to save for retirement despite their reduced wages, according to a bill summary provided by the lawmakers.
“Caregivers do some of the most important but under-appreciated work in our country,” said Pettersen, who sponsored both measures in the U.S. House of Representatives. “Caregivers often take a significant financial hit when they take time out of the workforce to prioritize their loved ones and many struggle with their own financial security and ability to save in the long term.”
Likewise, the bipartisan, bicameral Catching Up Family Caregivers Act would allow family caregivers to make catch-up contributions to employer-sponsored retirement plans, an option typically reserved for those over age 50.
For every year they are out of the workforce, caregivers could be eligible for an additional year of catch-up contributions, up to a maximum of five years, the summary says, noting that this provision would help caregivers who miss critical savings years get back on track with their retirement planning.
“These two pieces of legislation make it easier for caregivers to save for retirement, ensuring they can take care of their own financial health while caring for their family,” said Pettersen.
Both bills are supported by the Alzheimer’s Association, the Edward Jones Grassroots Task Force, the Society for Human Resources Management, the Insured Retirement Institute, and the National Alliance for Caregiving.
“Family caregivers provide critical support to their loved ones, yet many are forced to step away from work, significantly inhibiting their ability to save for retirement,” Collins added. “Our bipartisan bills would give these individuals a better opportunity to build a secure financial future and help ensure they are not penalized for the vital care they provide.”
Sen. Warner also pointed out that lawmakers need to make it easier for family caregivers to continue their essential work while also securing their own financial futures.
“I’m proud to introduce bills that would give these family caregivers the flexibility to continue contributing to retirement accounts so it’s easier for more people to care for aging relatives without obstructing their own ability to retire with dignity,” he said.