Wednesday, February 29, 2012

Allan Sloan: Social Security already IS means-tested

Social Security’s weakening financial state has caused some to call for means-testing, which would restrict benefits to lower-income retirees. (I discuss some of the issues with means-testing here.)

But writing for Fortune, Allan Sloan points out that Social Security is already progressive, such that low-earning individuals are treated better than high earners.

But does this mean we couldn’t make Social Security even more focused on low earners? Not in my opinion. After all, the program still pays a lot of benefits to retirees who are well above the poverty line and who could and would save more on their own if their future Social Security benefits were reduced.

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