Pete Buttigieg — the mayor of South Bend, Ind. hoping to clinch the Democratic nomination for president — has unveiled concrete plans to help more Americans retire comfortably, according to news reports.
Part of his plan includes increasing Social Security benefits to 125% of the federal poverty limit to those who worked or were a caregiver for 30 years, the Des Moines Register writes. To pay for the benefits, Buttigieg suggests raising the income cap subject to social security taxes from the current $133,000 to above $250,000, according to the publication.
Buttigieg’s plan also includes establishing a $90 per day benefit for long-term care as a cash benefit, Medicaid coverage for home- and community-based service providers and 12 weeks of annual paid family leave to help support non-paid caregivers, the Des Moines Register writes.
Buttigieg has also proposed setting up a “public option” 401(k) program that would require employers to provide a 3% match to employees’ accounts after a 1.5% contribution from the employee, according to the publication. The program, which would exempt employers offering defined-benefit or retirement plans similar to the public option 401(k), would include two pre-tax savings accounts, including one for retirement and one for emergency expenses that could be tapped without penalty, the Des Moines Register writes.
Buttigieg’s campaign claims the plan would help middle-earning American workers save over $500,000 for retirement, according to the publication.
Buttigieg posted a 9% to 10% lead over Sen. Elizabeth Warren, D-Mass., former Vice President Joe Biden and Sen. Bernie Sanders, D-Vt., in the Iowa Poll released Nov. 16, the Des Moines Register writes.