CRFB.org Social Security Reform Should Improve Equity Within - - PowerPoint PPT Presentation

▶
crfb org
SMART_READER_LITE
LIVE PREVIEW

CRFB.org Social Security Reform Should Improve Equity Within - - PowerPoint PPT Presentation

Oct 14, 2022 232 likes •379 views

CRFB.org Social Security Reform Should Improve Equity Within Generations Vertical equity: Increase progressivity of benefits and taxes Improve income security for low-income retirees and especially widow(er)s Horizontal Equity:

slide-1
SLIDE 1

CRFB.org

slide-2
SLIDE 2

CRFB.org

Social Security Reform Should Improve Equity Within Generations

Vertical equity:

  • Increase progressivity of benefits and taxes
  • Improve income security for low-income retirees and

especially widow(er)s

Horizontal Equity:

  • Reduce disparities between one-earner couples, two-

earner couples, and single earners

  • Fix offset for uncovered worker

2

slide-3
SLIDE 3

CRFB.org

Social Security Must Also Improve Equity Between Generations

3

slide-4
SLIDE 4

CRFB.org

Social Security is Promising More than It Has…

Source: 2019 Social Security Trustees’ report

4

8% 12% 16% 20% 1970 1980 1990 2000 2010 2020 2030 2040 2050 2060 2070 2080 2090

Dedicated Revenues Scheduled Benefits Payable Benefits Trust Fund Exhaustion: 2035 Benefit Cut: 20%

Percent of Payroll

slide-5
SLIDE 5

CRFB.org

And Future Generations Could Pay the Price

Source: 2019 Social Security Trustees’ report. 0% 50% 100% 150% 200% 250% 300% 350% 400% 450% 1990 2000 2010 2020 2030 2040 2050

Combined Trust Funds Old-Age & Survivors Insurance Trust Fund Disability Insurance Trust Fund

Percent of Benefits

5

slide-6
SLIDE 6

CRFB.org

How Old Will You Be When the Trust Funds Run Out?

6

https://www.crfb.org/blogs/how-old-will-you-be-when-social-securitys- funds-run-out

slide-7
SLIDE 7

CRFB.org

If You are 62 Today…

7

slide-8
SLIDE 8

CRFB.org

If You are 50 Today…

8

slide-9
SLIDE 9

CRFB.org

If You are 22 Today…

9

slide-10
SLIDE 10

CRFB.org

If You are 2 Years Old Today…

10

slide-11
SLIDE 11

CRFB.org

Delaying Action is Unfair to Future Generations

11

The longer we wait to save Social Security:

  • The larger and sharper adjustments will be
  • The more burden will fall on younger generations

and the less on older generations

  • The less time workers will have to plan and adjust
  • The worse off people will be from not knowing

what the future holds

  • The fewer ‘smart’ options will remain
slide-12
SLIDE 12

CRFB.org

Source: 2019 Social Security Trustees’ report.

0% 5% 10% 15% 20% 25% 30%

Tax Increase Benefit Cut for All Beneficiaries Benefit Cut for New Beneficiaries Starting in 2019 Starting in 2035

IMPOSSIBLE

Percent Change

Delaying Action is Unfair to Future Generations

12

slide-13
SLIDE 13

CRFB.org

There’s No One Way to Fix the Program’s Finances

13

8% 10% 12% 14% 16% 18% 20% 2009 2019 2029 2039 2049 2059 2069 2079 2089

Social Security 2100 Act Social Security Reform Act Conrad-Lockhart Plan

Percent of Payroll

Source: Social Security Trustees.

slide-14
SLIDE 14

CRFB.org

14

Come Up With Your Own Solution…

http://www.SocialSecurityReformer.org/