Search
 

Will Social Security be there for your retirement?

Raise tax rates a bit and Social Security might be fully funded for three quarters of a century to come. Finding the political will to do so, a harder job.

By Andy Stonehouse | Updated on April 24, 2012

Forbes’ Janet Novack shares her observations of Monday’s release of Trustees’ reports on the future stability of Social Security, and while the talking points were grim – old age and disability coverage will no longer be fully funded by 2033, three years earlier than projected – the reality is that Congress will still probably be able to pay 75 percent of its stated benefits, even if taxes stay the same as they are right now.

A simple but relatively significant increase to the employer/employee tax rate (from 12.4 percent to 16.7 percent) in 2033 would allow that to be a 100 percent funding level; Novack says that if current tax rates were raised to 15.1 percent, the system could remain fully solvent for another 75 years.

Complete your profile to continue reading and get FREE access to BenefitsPRO.com, part of your ALM digital membership.

Your access to unlimited BenefitsPRO.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical BenefitsPRO.com information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper

Recommended Stories

BenefitsPRO

Join BenefitsPRO

Don’t miss crucial news and insights you need to navigate the shifting employee benefits industry. Join BenefitsPRO.com now!

  • Unlimited access to BenefitsPRO.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
  • Exclusive discounts on BenefitsPRO.com and ALM events.

Already have an account? Sign In Now
Join BenefitsPRO

Copyright © 2024 ALM Global, LLC. All Rights Reserved.