The program isn’t only for seniors, however.
As many as two-thirds of all seniors get 50% or more of their income from Social Security, and more than a third rely on the program for more than 90% of their income, according to one estimate by the U.S. The harvest is a looming retirement crisis in which only Social Security provides a guaranteed safety net. Other than retirement plans, most families have “little or no retirement savings” and “nearly half of families have no retirement account savings at all, Monique Morrissey of the labor-supported Economic Policy Institute documented in a 2019 paper. That’s probably because those plans require workers to make contributions out of their paychecks, and lower-income workers may find it harder to scrape up the funding. In 1975, according to the Department of Labor, nearly 26 million American workers participated in so-called defined benefit pension plans, in which employers or unions shouldered the financial risk by 2019, that figure had shrunk to 12.6 million.ĭefined benefit plans have given way to defined contribution plans such as 401(k) plans, but participation rates are closely tied to income - 70% of those in the top fifth of income earners participate in their company 401(k)-type plans, but only 10% of those in the bottom fifth. With the steady disappearance of corporate pensions, Social Security has come to play a larger role as a source of retirement income.
What gives critics of Social Security the eternal hope that they can shrink or even eliminate the program is the notion, especially among younger workers, that it has become irrelevant to their futures. Plainly referring to the GOP, he added, “that one party that has a history of being against Social Security might say, ‘Here’s our chance.’” “Let’s say in 2024 we end up with a one-party government,” Arnone said. Arnone, chief executive of the National Academy of Social Insurance, one of our most important advocacy organizations for these all-important programs, during a recent appearance on C-SPAN. The common theme of these proposals is that “the programs need to be withered away,” observed William J. Mitt Romney of Utah and Marco Rubio of Florida have proposed a federal family leave program that would be funded out of recipients’ future Social Security benefits, creating a retirement disaster for those who participate. Johnson observed that under current rules, “if you qualify for the entitlement, you just get it no matter what the cost,” as if that’s a bad thing. Ron Johnson (R-Wis.), who proposed eliminating Social Security and Medicare as permanent programs and converting them to discretionary budget items that would have to be evaluated by Congress every year. you would not hear of that party again in our political history. Should any political party attempt to abolish social security. “Get the government out of it,” he said in June, apparently unaware that a privatization plan crafted by President George W. Senate in Arizona, has proposed privatizing Social Security. Rick Scott (R-Fla.) propose sunsetting Social Security and Medicare every five years, along with other federal programs, to give Congress recurrent cracks at zeroing them out.īlake Masters, now the GOP candidate for U.S. Just in the last few months, we’ve seen Sen. One almost has to admire Republicans for the tenacity and determination with which they keep coming up with new ideas for hobbling Social Security.
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