Saturday, May 21, 2016

9 Myths About Social Security

Courtesy of the Committee for a Responsible Federal Budget.

Myth #1: We don’t need to worry about Social Security for many years.
Myth #2: Social Security faces only a small funding shortfall.
Myth #3: Social Security solvency can be achieved solely by making the rich pay the same as everyone else.
Myth #4: Today’s workers will not receive Social Security benefits.
Myth #5: Social Security would be fine if we hadn’t “raided the trust fund.”
Myth #6: Social Security cannot run a deficit.
Myth #7: Social Security has nothing to do with the rest of the budget.
Myth #8: Social Security can be saved by ending waste, fraud, and abuse.
Myth #9: Raising the retirement age hits low-income seniors the hardest.

Check them all out here.


WilliamLarsen said...

"If viewed as an off-budget program, Social Security does not directly add to the “on-budget deficit.” However, it indirectly contributes to the on-budget deficit because the interest payments it receives from the general fund are on-budget. "

Myth 7 is a bit off. Interest paid to the SS trust funds is no different than paying interest on debt held by individuals, banks, etc. It was borrowed and the debt is owed.

Arne said...

Myth 6 is off a bit as well. Absent interest income, no retirement plan makes any sense. In fact, absent being able to draw down prior contributions, no retirement plan makes any sense. Saying that SS cannot run a deficit means defining interest income and trust fund draw down differently than this author. Myth 6 boils down to the myth that you can get an answer without agreeing on terms.