Studies show that workers at the two lowest income quartiles bank on Social Security to give them almost 85% of their retirement income. At the other end, the second highest quartile in terms of income relies on Social Security to make up more than half of their retirement funds. The highest quartile still relies on their pension payouts, although not as considerably as the other three quartiles.
It’s not that Social Security, as a government program, has insufficient funds to distribute to workers who’ve come of retirement age. Financially, the program stands on solid ground, as Congress forecasts that Social Security will be able to cover all benefits, which will be taken from its tax revenue income, up to a minimum duration of thirty years.
Although the program can theoretically afford all payouts for a few more decades, these very payouts are small (which may be why projections say that these payouts are feasible). This is a significant concern for many retirees as Social Security is typically the worker’s go-to plan. As of now, payouts only replace thirty to forty percent of the worker’s average salary from the year before actual retirement. This figure won’t be enough to fund retirement if it is the primary source of income, or more unfortunately, the only revenue stream.
The New America Foundation proposal seeks to implement “Social Security Plus,” a program to double payouts upon retirement to support seniors in their golden years. This new spin on the old Social Security program seeks to improve the financial situation and quality of life of United States retirees by doubling individual payouts, which will cost approximately $650B per year for more than fifty million Americans at the receiving end. While the possible benefits to society are quite impressive, the concept still seems far away – how will this program get funds?
This review was brought to you by Puritan Financial Group. Puritan Financial Group is owned by Puritan Financial Companies, based in Dallas TX. Puritan Financial Group is a leading provider of financial solutions for clients beginning in their peak earning years and continuing through retirement, helping them to accumulate, protect and transfer wealth.
It’s not that Social Security, as a government program, has insufficient funds to distribute to workers who’ve come of retirement age. Financially, the program stands on solid ground, as Congress forecasts that Social Security will be able to cover all benefits, which will be taken from its tax revenue income, up to a minimum duration of thirty years.
Although the program can theoretically afford all payouts for a few more decades, these very payouts are small (which may be why projections say that these payouts are feasible). This is a significant concern for many retirees as Social Security is typically the worker’s go-to plan. As of now, payouts only replace thirty to forty percent of the worker’s average salary from the year before actual retirement. This figure won’t be enough to fund retirement if it is the primary source of income, or more unfortunately, the only revenue stream.
The New America Foundation proposal seeks to implement “Social Security Plus,” a program to double payouts upon retirement to support seniors in their golden years. This new spin on the old Social Security program seeks to improve the financial situation and quality of life of United States retirees by doubling individual payouts, which will cost approximately $650B per year for more than fifty million Americans at the receiving end. While the possible benefits to society are quite impressive, the concept still seems far away – how will this program get funds?
This review was brought to you by Puritan Financial Group. Puritan Financial Group is owned by Puritan Financial Companies, based in Dallas TX. Puritan Financial Group is a leading provider of financial solutions for clients beginning in their peak earning years and continuing through retirement, helping them to accumulate, protect and transfer wealth.
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