Here's how expanding social security helps all retirees:
For lower-income workers, by contrast, rates of return on these catch-up contributions would be quite high. For those in the lowest earnings bucket—workers who earned 25% or less of the median Social Security recipient—rates of return on catch-up contributions would be roughly 4.5%, compared to around 1% for higher earners. The dollar amount for lower-earners would be lower, since benefits are proportional to contributions, but the return would be significantly greater for those at the bottom.
The key point to understand about Social Security is that it is an insurance program. It insures against the possibility that we outlive our retirement savings. While there are other vehicles for retirement savings—401s, IRAs, annuities—Social Security is the most effective way to protect the broader population. Since it is a pay-as-you-go program supported by payroll taxes, it isn’t vulnerable to financial market ups and downs.
Our Catch-Up proposal is not the final word on Social Security. It would slightly reduce the actuarial shortfall of Social Security in the long run, but there are other ways of shoring up the system for future beneficiaries. Still, the proposal underscores a basic point understood by
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
UNICEF warns of scam coronavirus messages circulating through social mediaUNICEF is warning the public about the spread of coronavirus misinformation after a scam message purporting to be from the organization has been circulating online.
Leer más »
Demi Lovato Reveals How She 'Protects' Herself on Social Media LatelyDemi Lovato discussed her relationship with social media and how she 'protects' herself from trolls in a new Zane Lowe interview.
Leer más »
Stacey Solomon honours Caroline Flack by quitting social media on funeral dayJoe Swash's girlfriend Stacey Solomon announced she is taking time off from social media to honour Caroline Flack on the day of her funeral
Leer más »
Cities deserted, families separated and social life on hold in Italy's first day of lockdownFamous tourist sites were deserted, a smattering of bar-goers kept at arm's length from each other at formerly lively establishments and worried citizens stood in line outside once bustling stores in Italy after drastic restrictions were imposed to contain the deadliest coronavirus outbreak outside China.
Leer más »
‘American Horror Story’ Season 10 Poster Washes Up On Social MediaIt’s coming. Exactly what it is, however, is up to the interpreter. Ryan Murphy has posted on Instagram the first key art for Season 10 of American Horror Story. Check it out below. Less than…
Leer más »
What Does ‘Social Distancing’ Really Mean?Social distancing is good for the community, and a crucial preventative measure. But what is social distancing, exactly?
Leer más »