fact sheet - social security solvency and sustainability act
DESCRIPTION
Senators Paul, Lee, Graham - Social Security Solvency and Sustainability ActTRANSCRIPT
Senators Graham, Paul and Lee
SOCIAL SECURITY SOLVENCY AND SUSTAINABILITY ACT
THE PROBLEM
Demographic Changes Are Impacting Social Security Solvency
When Social Security was created, there were over 40 workers for every retiree.
In 1950, there were 16 workers supporting 1 retiree.
Today, the ratio is 3 workers to 1 retiree.
In 2035, the ratio drops to 2 to 1.
The Trustees Of Social Security Have Warned Us Of Serious, Structural Problems Facing The System
In 2015 the program will begin to permanently pay out more in benefits than it takes in as taxes.
In 2037, the Trust Fund will be exhausted and unable to pay full benefits to retirees.
SENATORS PROPOSE:
What Our Plan Accomplishes:
- Reduces debt held by the public by $6.2 trillion by 2085;
- Eliminates the current difference of $5.4 trillion between benefits promised and what Social
Security can actually pay, and;
- Creates a fully solvent and sustainable Social Security system that will be able to provide the
benefits it promises to future generations without raising taxes.
Gradual Increase In The Social Security Retirement Age – The Senators propose a gradual increase in
the Social Security full retirement age to 70 by 2032.
Indexing The Retirement Age To Longevity – When retirement age of 70 is achieved, the full
retirement age will then be indexed to increases or decreases in life expectancy. Indexing will help
maintain a constant ratio of years worked to years spent in retirement. (See attached chart detailing
current law and the Social Security Solvency and Sustainability Act retirement ages)
Gradual Increase In The Early Retirement Age – The Senators propose a gradual increase in the
Social Security early retirement age from 62 to 64 by 2028.
Slower Benefit Accumulation For Higher Lifetime Earners – After 2018, all new retirees coming into
the system will have benefits based on the first $43,000 of their average lifetime yearly earnings
calculated based on the current formula. Benefits for earnings above $43,000, will be calculated at a
lower rate as earnings rise.