Académique Documents
Professionnel Documents
Culture Documents
Presentation on Reporting
on Aging Issues
Nancy J. Altman
President, Social Security Works
Chair, Strengthen Social Security Coalition
October 17, 2017
Overview
Political Landscape
Background
Common Misunderstandings and
Misinformation
Future Action
Political Landscape: The
Conversation has Shifted
2008 Party Platforms
Democratic:
Retirement and Social Security
We will fulfill our obligation to strengthen Social Security and to make sure that it provides
guaranteed benefits Americans can count on, now and in future generations. We will not privatize it.
Republican:
Social Security
We are committed to putting Social Security on a sound fiscal basis.
2016 Party Platforms
Democratic Platform
Protecting and Expanding Social Security
Democrats will expand Social Security so that every American can retire with dignity and respectWe will
make sure Social Securitys guaranteed benefits continue for generations to come by asking those at the top to
pay more
Republican Platform
Saving Social Security
everyone knows that [Social Securitys] current course will lead to a financial and social disaster. Current
retirees and those close to retirement can be assured of their benefits. Of the many reforms being proposed, all
options should be considered to preserve Social Security. As Republicans, we oppose tax increases and believe in
the power of markets
Social Security and Congress
There are over a half dozen expansion bills
Social Security 2100 Act has 164 sponsors/cosponsors 85 percent of
Democratic caucus
All but two Democrats voted for a resolution offered in the 114th Congress by
Senators Elizabeth Warren and Joe Manchin, calling for expansion. No
Republicans voted for it.
Donald Trump pledged no cuts to Social Security
But there is evidence to contrary
Actions by Republicans in Congress and Administration belie the promise
Statements
Budgets
Pay-Fors
Background
Social Security is insurance against
the loss of wages in the event of
death, disability, or old age
How Many People Receive Social Security?
9
Social Security Administration (SSA), 2016a; National Academy of Social Insurance, 2016.
Who Receives Social Security?
10
SSA, 2016a.
Over 16.5 million Americans receive disability and
survivors benefits through Social Security
How Much Does Social Security Pay?
(June 2016)
Average Monthly Average Yearly
By Beneficiary Type: Benefit Benefit
SSA, 2016a; SSA, 2016b; U.S. Department of Health and Human Services, 2016.
How Do Benefits
Replacement Rates for Retired Worker Age 65, 2016
Compare to Earnings?
$140,000
Career-Average Wages $116,123
$120,000
$100,000 Benefits
$76,369
$80,000
$60,000 $47,731
$40,000 32% 26%
$21,479 39%
$20,000 53% $29,897
$24,628
$11,270 $18,579
$0
"Low" "Medium" "High" "Maximum
Earnings Level taxable"
19
SSA, 2016e: Tables 2.A1 and 9.A1.
If Social Security Benefits are Cut Now Net Social
Security Replacement Rates Will Fall
Medium Earners Replacement Rate at 65
(after Medicare Parts B & D premiums and taxation of benefits)
45
38%
40
Percent of Prior Earnings
35 34%
31%
30
25
20
15
10
5
0
2010 2020 2030
20
Munnell, 2013.
Increase in Full Retirement Age (FRA) Lowers
Retirement Benefits at Any Age Claimed
140
Percent of Full Benefit Payable
80
60
40
20
0
62 63 64 65 66 67 68 69 70
Age When Benefits are Claimed
21
Gregory et al., 2010.
The Debate about Social
Security is a Debate
About Values
Common
Misunderstandings
and Misinformation
Social Security Doesnt Add a Penny to the
Debt
Section 13301 of the Omnibus Budget Reconciliation Act of 1990 states:
Notwithstanding any other provision of law, the receipts and disbursements of
the Federal Old-Age and Survivors Insurance Trust Fund and the Federal
Disability Insurance Trust Fund [i.e., Social Security] shall not be counted as
new budget authority, outlays, receipts, or deficit or surplus for purposes of
(1) the budget of the United States Government as submitted by the President,
(2) the congressional budget, or
(3) the Balanced Budget and Emergency Deficit Control Act of 1985.
Younger workers can count on Social Security