When Social Security benefits were first paid in 1940, 46 percent of adult males couldn’t even make it to 65, and for those who did, the average additional life expectancy was less than 13 years. For a typical 65-year-old couple today, at least one partner, on average, will likely make it to 90 or beyond
For a typical 65-year-old couple, Social Security and Medicare benefits, adjusted for inflation, are worth over $1.1 million today, compared with $330,000 in 1960.
Declines in birthrates and, at times, immigration rates, have helped lower the ratio of covered workers to beneficiaries from 4.0 in 1965 to 2.7 today, with 2.3 projected in two decades.
80 percent of federal spending growth since 1980 has gone to Social Security and health care (much of it for Medicare).
Source: C. Eugene Steuerle and Glenn Kramon in the New York Times
COMMENT: It should be a bunch of Uneducated Black children carrying an Old WHITE guy with a Ph.D. In 1940 the average lifespan was 51 for Black Males which have the shortest lifespan between the genders and races. Black Economist Walter Williams said, “Everybody knows I’m going to die 8 months before I qualify for benefits and White Women will get benefits for years. Both Social Security and Medicare are racial rip-offs.” Richard Pryer died 9 days after turning 65 and his children get NOTHING for a lifetime of taxes. That’s interesting because the NEW Speaker Mike Johnson discusses moving back the age at which Americans qualify for Medicare. If the Black man’s taxes went into Private Savings Accounts (PSA), when he died at 60 his WEALTH or Prosperity is passed to his FAMILY! Tax-free PSAs will target WEALTH to FAMILIES!
Of course, you would hate that Dr. Goodman because you HATE tax-free Accounts like the tax-free HSA who you want to start taxing like a ROTH, INSANE but true. I find it incredible that the brilliant Dr. Goodman [wouldn’t] point out that the POOR die younger too! Why doesn’t Dr. Goodman discuss Black Males and moving Social Security’s retirement age back.
Also, Goodman’s flat tax credit of $4,000 per adult instead of “Age-Based” tax credits means that 21-year-olds get the same credit for health insurance as a 64-year-old male. That’s not smart because 64-year-olds cost a BUNCH more than 21-year-olds for health insurance. I thought everybody knew that. Think before you talk to Pete Sessions. He will do anything you say. Wouldn’t it be great if Americans had tax-free HSAs AND tax-free PSAs for the SAVING of Social Security? Tax-free Accounts target PROSPERITY to the MASSES.
Repeat after me Dr Goodman: Money that is NEVER taxed will last LONGER in Retirement!
“In 1940 the average lifespan was 51 for Black Males”
You’ve cited the the life expectancy at birth, back in 1940. John is talking about life expectancy at age 65, today.
btw, a voluntary opt-out from SS into an IRA would likely benefit most people. You needn’t racialize it.
Oh, and do you have a source for the Walter Williams comment you claim he made?
(If you have to respond, you need not use more than about 25 characters including caps exclamation points. Brevity is – or at least once was – the soul of wit.)
Fairness favors closing the Social Security funding gap by restricting benefits rather than increasing revenues. But I don’t see this happening, when even my Republican congressman pledges not to cut benefits. Even shifting COLAs to Chained CPI is likely a tough sell, and only makes a small dent in the shortfall.
If revenue increases are inevitable, then raising the cap on taxable earnings seems preferable to increasing the payroll tax rate. Not because of a desire for more progressivity, but because high salaries generally imply workers farther along in their careers and closer to retirement. The younger workers are getting screwed enough as it is.
My main hope is that they don’t close the gap all the way. If they can soften the expected 20% benefit reduction in 2034 to a later 3 to 5% reduction, that’s probably the best we can hope for. Allowing the trust fund to stay completely depleted would limit growth better than anything Congress will ever do.