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

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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 CRFB.org 2

Social Security Must Also Improve Equity Between Generations CRFB.org 3

Social Security is Promising More than It Has… Percent of Payroll 20% Scheduled Benefits 16% Payable Benefits Dedicated Revenues 12% Trust Fund Exhaustion: 2035 Benefit Cut: 20% 8% 1970 1980 1990 2000 2010 2020 2030 2040 2050 2060 2070 2080 2090 CRFB.org Source: 2019 Social Security Trustees’ report 4

And Future Generations Could Pay the Price Percent of Benefits 450% Old-Age & Survivors Insurance 400% Trust Fund 350% Combined 300% Trust Funds 250% 200% 150% Disability Insurance Trust Fund 100% 50% 0% 1990 2000 2010 2020 2030 2040 2050 Source: 2019 Social Security Trustees’ report. CRFB.org 5

How Old Will You Be When the Trust Funds Run Out? https://www.crfb.org/blogs/how-old-will-you-be-when-social-securitys- funds-run-out CRFB.org 6

If You are 62 Today… CRFB.org 7

If You are 50 Today… CRFB.org 8

If You are 22 Today… CRFB.org 9

If You are 2 Years Old Today… CRFB.org 10

Delaying Action is Unfair to Future Generations 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 CRFB.org 11

Delaying Action is Unfair to Future Generations IMPOSSIBLE Percent Change 30% 25% 20% 15% 10% 5% 0% Tax Increase Benefit Cut for All Benefit Cut for New Beneficiaries Beneficiaries Starting in 2019 Starting in 2035 CRFB.org Source: 2019 Social Security Trustees’ report. 12

There’s No One Way to Fix the Program’s Finances Percent of Payroll 20% Social Security 2100 Act 18% 16% Conrad-Lockhart Plan 14% 12% Social Security Reform Act 10% 8% 2009 2019 2029 2039 2049 2059 2069 2079 2089 Source: Social Security Trustees. CRFB.org 13

Come Up With Your Own Solution… http://www.SocialSecurityReformer.org/ CRFB.org 14