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?
What Needs to Be Done to "Save" Social Security
To balance the system's finances,
- 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.
- 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.
- Raising the full retirement age to 68 by the year 2028 would get 18% closer to 100% balanced.
- Raising the full retirement age to 70 by 2040 would get 44% closer.
- Switching to a chained consumer price index, which factors in peoples' tendency to switch to cheaper products when prices go up, gets 23% closer.
- 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.
- Raising the payroll tax from 6.2% to 7.2% ($500 a year more for a person making $50,000) gets 64% closer.
- Lifting the cap on earnings subject to SS tax from the current $110,100 to $215,000 gets 36% closer.
- Removing the cap on earnings subject to SS tax altogether gets us 86% closer.
So, mix and match to "save Social security in perpetuity. What's your pleasure? 7%, 31%, 18%, 44%, 23%, 22%, 64%, 36%, 86%