Historical Context -
Social Security continues to be a Government program with large popular support and with good reason. It provide retirees with a "guarunteed" source of income once they leave the workforce, supplementing any retirement saving they may have accrued in other area (401-k, IRA, Pensions, etc.). Having this safety net in place provides not just a sense of security, but a means of allowing seniors to remain independent as long as their health holds-up, reducing the burden on supportive children and caregivers.
Without this system, we could very well see a return to the days when senior poverty was prevalent. No one wants this, so let's keep the system up-and-running for both the here-and-now and in the future. If we have contributed into the system, we should darn well see a return in-kind at retirement age.
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Creation and future outlook
social-security# used as national-id#
Funding Concepts and Choices
option: funding & benefit aleternatives
future projection concepts
funding solvency -
There are a number of ways to bring the Social Security safety net back into balance. It is not in as bad a position as the way political elites (particularly Republicans) describe it. It just needs a little fine tuning and the political will to make the necessary hard choices about how the burden will be shared by all (1.4%-GDP per CBO).
My particular approach would be:
1. Remove the taxable-maximum cap on the Payroll tax (1%-GDP funding via Revenue Increase).
2. Have an adjustable retirement age, one that adjusts (slowly, up or down) based on the average life expectancy of Americans. (0.3%-GDP funding via Benefit Reduction).
3. Increase payroll tax by ~0.5% (~0.2%-GDP funding via Revenue Increase).
This would keep the system solvent for the studied 75-year actuarial balance time-span and keep investment in the system broad and fair.
Other adjustments I would consider:
3. Require Public sector employees to pay payroll taxes
4. Eliminate benefits for full-time-Student of retired workers.