Ezra Klein Shares Facts About Social Security’s Budget Problem

According to Ezra Klein, there are eight facts and three thoughts to consider about our Social Security program. With the recent budget talks and government debates about Social Security reform Americans have felt an increased threat to a program that millions of disabled individuals rely on. It also seems like everyone has an opinion on how to fix Social Security or how to keep the program solvent for our future generations.

According to Klein, Social Security’s shortfall over the next 75 years is equal to about 0.7 percent of GDP.

Social Security has replaced about 40 percent of working-age earnings for the average 65-year-old retiring in 2010. The replacement rate is schedule to fall to 31 percent in the coming years.

Social Security’s replacement rate puts it 26th among 30 Organization for Economic Cooperation and Development nations for workers with average earnings.

Forty five percent of seniors would be under the poverty line if it was not for Social Security. With the help of Social Security benefits, 10 percent of seniors are under the poverty line.

Americans qualify for Social Security benefits at age 62, but if they wait until age 70 their checks dramatically increase.

Raising the retirement age by one year amounts to 6.66 percent cut in benefits.

Americans are living longer: in 1935 a white male age 60 was expected to live to 75. Today a white male age at 60 is expected to live to 80.

Klein says that Social Security’s shortfall is manageable by applying the payroll tax to income over $106,000. He also feels that some elites have a strong preference for working longer while most Americans show a strong preference to retiring as soon as possible.

Klein suggests that Social Security’s reform should be done as part of our retirement-security infrastructure rather than simply as a budgetary problem.

Categories

    I didn't think there was a caring professional considerate attorney firm on the planet, but Troutman & Troutman proved me wrong. From the receptionist to the legal assistance to the attorney and more they were exceptional people.

    - Robert S.

    They did a fantastic job getting everything gathered up and getting the trial done as quickly as possible. Anytime I had a question they were patient and help me understand what was going on. Especially Christy and Charlie were great.

    - Michael M.

    Steve Troutman was able to get my short-term and long-term disability for me. Then Erin another lawyer for their firm got my Social security disability for me. Great people.

    - Billy S.

    Mr. Troutman walked me through the entire process. Heather was available each time I called, answered all my crazy questions, and helped me fill out forms along the way. I was never treated like I was wasting time.

    - Julia C.

    Erin and Keith were fabulous! They were compassionate, helpful, and very responsive! They made the process very smooth and painless every step of the way.

    - Valerie W.

We Are Here to Help 

Free & Confidential Consultations
  • Please enter your first name.
  • Please enter your last name.
  • Please enter your phone number.
    This isn't a valid phone number.
  • Please enter your email address.
    This isn't a valid email address.
  • Please make a selection.
  • Please enter a message.