Tweaking Social Security

There are lots of things that can be done to "tweak" Social Security to make it sound forever.  Here are a few things Congress can do, if and when they get their act together.  What would YOU do?
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What Needs to Be Done to "Save" Social Security

(AARP)

 

To balance the system's finances,

 

  1. Trimming benefits to the highest quarter of the population, on a sliding scale up to 15%, would get 7% closer to the 100% balance mark.

 

  1. Trimming benefits to the highest earning half of the population (on a sliding scale up to 28%) would get 31% closer to the 100% balanced mark.

 

  1. Raising the full retirement age to 68 by the year 2028 would get 18% closer to 100% balanced.

 

  1. Raising the full retirement age to 70 by 2040 would get 44% closer.

 

  1. Switching to a chained consumer price index, which factors in peoples' tendency to switch to cheaper products when prices go up, gets 23% closer.

 

  1. Raising the payroll tax from the traditional 6.2% to 6.45% (e.g., adds an extra $125 a year to a person's SS tax for someone making $50,000) gets 22% closer.

 

  1. Raising the payroll tax from 6.2% to 7.2% ($500 a year more for a person making $50,000) gets 64% closer.

 

  1. Lifting the cap on earnings subject to SS tax from the current $110,100 to $215,000 gets 36% closer.

 

  1. Removing the cap on earnings subject to SS tax altogether gets us 86% closer.

 

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So, mix and match to "save Social security in perpetuity.  What's your pleasure?  7%, 31%, 18%, 44%, 23%, 22%, 64%, 36%, 86%


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