Social Security turns 80 today–happy birthday!

August 14th, 2015 at 7:52 am

Over at PostEverything. Far from the looming disaster some like to paint her, she’s going strong and with any of a number of fixes to close the solvency gap, will continue to provide retirement security to millions for as long as we chose to support her.

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One comment in reply to "Social Security turns 80 today–happy birthday!"

  1. Fred Donaldson says:

    One of the problems facing acceptance of Social Security is that it does not pay benefits according to how much you contribute on a percentage basis. It is a three-tier system with the top tier receiving 15% of prior wages, versus about 50% in the middle tier and about 90% at the bottom. The more you pay in, the lower percentage of prior wages come back in SS benefits. The goal of many “reformers” is to further cut the 15% in order to remove most of the fairness from the system.

    Most countries provide a basic pension, regardless of earnings. In addition, there is a SS benefit based on earnings and contributions. The basic pension is paid out of general government funds (taxes paid by rich and poor), not by reducing the pension of those at the higher end of the $118,000 earnings limit.

    The wealthy class opposes a basic pension, because they would have to pay for part of it, instead of it being funded purely by wage earners.

    Oddly, increasing the cap and extending it to other types of income would solidify the current SS system, simply because all of these monies would paid back eventually at the 15% rate, not 50% or 90%.


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