THE PROBLEM
Demographic Changes Are Impacting Social Security Solvency When Social Security was created, there were over 40 workers for every retiree. In 1950, there were 16 workers supporting 1 retiree. Today, the ratio is 3 workers to 1 retiree. In 2035, the ratio drops to 2 to 1. The Trustees Of Social Security Have Warned Us Of Serious, Structural Problems Facing The System In 2015 the program will begin to permanently pay out more in benefits than it takes in as taxes. In 2037, the Trust Fund will be exhausted and unable to pay full benefits to retirees.
SENATORS PROPOSE:
What Our Plan Accomplishes: Reduces debt held by the public by $6.2 trillion by 2085; Eliminates the current difference of $5.4 trillion between benefits promised and what Social Security can actually pay, and; Creates a fully solvent and sustainable Social Security system that will be able to provide the benefits it promises to future generations without raising taxes.
Gradual Increase In The Social Security Retirement Age – The Senators propose a gradual increase in the Social Security full retirement age to 70 by 2032. Indexing The Retirement Age To Longevity – When retirement age of 70 is achieved, the full retirement age will then be indexed to increases or decreases in life expectancy. Indexing will help maintain a constant ratio of years worked to years spent in retirement. (See attached chart detailing current law and the Social Security Solvency and Sustainability Act retirement ages) Gradual Increase In The Early Retirement Age – The Senators propose a gradual increase in the Social Security early retirement age from 62 to 64 by 2028. Slower Benefit Accumulation For Higher Lifetime Earners – After 2018, all new retirees coming into the system will have benefits based on the first $43,000 of their average lifetime yearly earnings calculated based on the current formula. Benefits for earnings above $43,000, will be calculated at a lower rate as earnings rise.
Hello Mr, Paul I agree Social security need's to be fixed I'm a realest and like plane straight talk I have worked most of my life starting at the young age of 16 years old times were hard I remember my father talking about how they took a penny out of his check for social security back in the day ,I also know if the system had not been robed more or less to pay for this or that SS would have been
