The income replacement provided by Social Security is among the lowest in the world when compared with other government programs. Someone with final earnings of $40,000 receives about 36% replacement ($55% including spouse benefit). With final earnings of $60,000 the replacement is about 31% (47.5% with spouse).
So the questions are:
how much is sufficient? How much should be funded by ones working life taxes? How much should be funded by other taxpayers? How much of retirement income should be an individual’s responsibility?
Should the Social Security formula be changed so that the replacement percentage for the lowest income individuals is nearer 100% replacement?
Bernie Sanders and others call for increased Social Security benefits. Can we first make Social Security sustainable and then add higher benefits?
How much more are you willing to pay in taxes to have a larger steady income in retirement?
When you sort out all the political rhetoric, these are the questions that must be answered.
But first, we need to fix Social Security as currently designed.
Categories: Social Security