— Hidden N Plain Sight (@RestOfTheStory3) May 14, 2013
Please take a moment to view this 1:17 minute video clip by clicking on the second blue hyperlink entitled, “Social Security Benefit Replacement Rates Already Going Down In The Future.”
This clip features social policy expert Ms Janice Gregory, who served as a founding member and President of NASI [National Academy Of Social Insurance] from 2009-2012.
It is not generally well-understood just “how paltry” a typical Social Security beneficiary’s monthly benefit is–compared to a beneficiary’s average wage earnings during their lifetime.
Please note that the drop or decrease in future benefit replacement rates which Ms Gregory describes is already set into law.
In other words, without further tweaks or reforms by this Administration or Congress, the Social Security ‘replacement rate’ for lifetime average earnings in 2010–the year this video was made–was just 39%.
And under current law, or the Social Security Reform Act of 1983, this replacement rate is already scheduled to be reduced to only 32% by 2030.
In this video, Ms Gregory is referring to the percentage of decrease in ‘replacement rates’ for Full Retirement Age (FRA) beneficiaries–age 65.
[Note: FRA for some retirees is already 66 or 67 under current law.]
I cannot discern from Gregory’s remarks whether these same replacements rates apply to Early Age Retirement (ERA) beneficiaries; or, if ERA beneficiaries are likely to suffer even greater decreases in their respective replacement rates.
But what I do know, is that the preservation of our social safety net should be a bipartisan issue.
And I am hopeful that Americans will put aside their partisan differences, and work together to preserve and strengthen our social insurance programs. Also, I consider it to be absolutely vital that the information above, regarding the extremely low replacement rates, be as widely disseminated as possible.
Especially, since there is an ongoing and tenacious bipartisan effort by some lawmakers to negotiate a ‘Grand Bargain,’ which would likely result in a deal containing many [if not all] of the cuts to Social Security and Medicare which were recommended by the Bowles-Simpson Fiscal Commission in their Chairman’s Mark proposal, “The Moment Of Truth.”
So please, consider ‘Retweeting’ this post–it would be much appreciated!
And don’t be shy about calling the White House, your US Senators, and your US Representative to tell them: