Tuesday, July 13, 2010

Propose reducing future social security benefits for those not yet 55

Thomas N. Bethel has a story on p 16 of the 2010 July-August AARP Bulletin, “Social Security: Where do we go from here?”, link here.

Bethel discusses a proposal by Rep. Paul Ryan of Wisconsin to reduce benefits for those 55 or younger in 2011, replacing some of the FICA tax with a privatized annuity fund with some strict regulation to keep it conservative. But there is no guarantee that the private part would replace the loss of benefits. But that seems to be the most specific serious proposal to reduce benefits to hit the streets so far, to stop “kicking the can down the road.”

Seniors show an increasing dependency on social security because of the economy.

64% of social security beneficiaries were retired workers in 2009. Just 5% where stay-at-home spouses, but widows, widowers and parents (even) made up 9%.

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