Social Security: A Promise to All Generations:
Social Security – A Comprehensive Family Insurance Program
For nearly 75 years, Social Security has operated as a family insurance program that serves and benefits individuals of all ages. In addition to being a retirement program, Social Security provides a substantial safety net for more than 53 million Americans, including retirees, the disabled, children and families.
ARA Educates Retiree Groups on Threats to Social Security & Job Security
The Alliance for Retired Americans reports that many Americans will be badly affected by social security cutbacks. For African Americans Social Security benefits are the primary income for 40% of African American retirees. In addition one of every five (nearly 21 percent) who receive Social Security disability benefits is African American and more than one of every eight (13 percent) African Americans who receive Social security benefits gets survivor benefits.
Social Security is a lifeline to many older women, keeping them out of poverty. According to a report from the Institute for Women’s Policy Research (IWPR), in 2009, Social Security helped more than 14 million Americans aged 65 and older stay above the poverty line. Without access to Social Security, 58 percent of women and 48 percent of men above the age of 75 would be living below the poverty line.
In Maryland, about 1 in 7 residents- about 850, 000 people (including 64,000 children) receive disability, survivor, and/or retirement benefits from social security. 86 % of residents 65 and older receive s.s. benefits and for many that’s their sole income averaging about $12,000 a year. In D.C. about 1 in 8 residents are receiving such benefits.
Working with its partner organization, the Strengthen Social Security campaign, the Alliance will help spotlight the importance of Social Security for our nation’s veterans. The report also shows that over 9 million veterans receive Social Security and many without jobs or decent jobs solely depend on it. The promise that should not be broken, especially for those who have who served our nation with such pride and dedication,” said Ruben J. Burks, Alliance Secretary-Treasurer.
Further, loss of jobs and job income are causing serious problems for both low and middle income Americans. The federal and local government's failure to finance jobs and create a robust jobs program means that many more women will lose their jobs as state and local governments reduce their workforces. Women are being asked to shoulder a burden that is not of their making, to pay a “fair share” of the sacrifice that is needed when they are not getting a fair share of the jobs in the recovery or equal pay for an equal day’s work.
Women are now faced with an added economic challenge because they are not getting their fair share of jobs in the recovery. Even though the recession was dubbed a ‘mancession’ jobs are now being gained at a faster rate for men than for women. While men have recovered 24 percent of the jobs they lost during the recession, women have recovered only 14 percent of the jobs they lost. Single mothers and women of color are particularly at risk; their unemployment rates remain in the double digits. The gender gap is an ongoing economic hurdle for women, who have lower median earnings than men in 107 out of 111 occupations, regardless of levels of education.
According to a recent study, over 2.4 million grandparents are now raising their grandchildren in the United States. In these instances, Social Security works to ensure that America’s children are kept safe and secure by providing a source of income for older Americans who are raising their grandchildren. While these children themselves are not directly receiving Social Security, they do directly benefit from the program because of the higher family income the grandparent is receiving due to the Social Security payment. In fact, it is estimated that 44% of older Americans, including such grandparents, would be considered poor by federal standards if they did not receive these necessary and critical Social Security benefits.
Americans Favor Strengthening Social Security
Americans agree that Social Security should be strengthened – not cut – so that it may continue to support generations for years to come. In fact, when given the choice between cutting taxes and government spending or strengthening Social Security in response to the economic crisis and large deficit, two in three Americans (66%), including 73 percent of African Americans, 67 percent of Hispanics, and 66 percent of whites, support strengthening Social Security over cutting its benefits. Americans are willing to pay for stronger Social Security benefits. Additionally, when asked their preference between raising taxes on workers or reducing benefits, nearly three in four Americans (71%) said they prefer raising taxes to reducing benefits. It is clear that the impact of today’s economic situation on the retirement security of current retirees, which saw the crumbling of 401(k) values and dramatic bursting of the housing bubble, has prompted more and more of today’s working generation to turn towards – not away from – embracing Social Security as a critical part of their retirement security.
Social Security Myths & Rhetoric – What’s Going On?
Today, support for Social Security continues to grow, with large majorities of Americans (88%) saying that Social Security is more important than ever. Notwithstanding this continued overwhelming support, last round’s privatizers are gearing up again to dismantle Social Security, this time deploying scare tactics and spin to fool people into believing that Social Security as on the verge of bankruptcy and in need of drastic cuts or complete elimination. These efforts are targeted towards our youth, with misinformation deliberately designed to make them think that Social Security will not be there for them when they retire – so why should they support it now?
Now’s the time to tell your friends and neighbors: “Don’t believe the hype.” Social Security is on schedule to deliver full, guaranteed benefits until at least 2037. Even after 2037, the program can continue to pay more than 75% of promised benefits through 2083. Social Security’s long-term solvency can be resolved by relatively modest adjustments and without cutting benefits. For instance, if Congress would simply let the Bush tax cuts expire for the wealthiest Americans – those with annual incomes over $350,000 – the revenue produced would put Social Security in balance for the full 75 years. Likewise, if all earned income above $106,800 annually were subject to Social Security contributions but did not count toward benefits, Social Security’s projected long-term deficit would be completely eliminated. If the higher income counted toward Social Security benefits, about 95 percent of the shortfall would be absolved.
How to Respond When Someone Says…
“Social Security is burying our children in mountains of debt!”
Social Security has not added a single cent to the federal budget deficit. The federal government doesn’t fund Social Security – American workers do. Think about it: Social Security is funded directly by payroll contributions divided equally between workers and their employers. As such, it has its own dedicated source of revenue and it is fully financed for years to come. Today’s youth are falling behind their parents’ generation due to a decline in quality, American jobs and a failure to adopt policies that help young families balance their roles as workers and parents.
“Social Security is a burden to our youth.”
While the highly privileged may be fortunate enough to already be setting reserves aside for their retirement, the fact remains that the vast majority of today’s youth and their families are struggling as a result of high unemployment, stagnant wages and a shift from traditional pensions to 401(k) plans. These are the folks who will likely need strong retirement, disability and survivorship protections as they grow and raise families of their own. Moreover, younger workers already face a higher normal retirement age of 67. We ought to be talking more about preserving and strengthening the program for young and old alike, instead of pushing for cuts to the benefits of future generations.
“The baby boomers are going to bankrupt the program!”
Social Security has run a surplus since the early 1980s in anticipation of the Baby Boomer retirement. Thus, the savings in the trust fund are already there to meet this increased demand.
For more information on Social Security and retiree issues, please visit:
Alliance for Retired Americans: www.retiredamericans.org
National Committee to Preserve Social Security and Medicare (www.ncpssm.org
Academy of Social Insurance: http://ww.nasi.org/
Social Security Matters: http://www.socialsecuritymatters.org/
Social Security Works: http://socialsecurity-works.org
United States Social Security Administration: www.ssa.gov
SOCIAL SECURITY IS NOT IN CRISIS OR BROKE
The Politics of Aging
Presentation for the Alliance for Retired Americans
June18, 2008
Laura Feldman
National Committee to Preserve Social Security and Medicare (www.ncpssm.org)
Politics can be a laughing matter according to Laura Feldman, a Grassroots Manager for the National Committee to Preserve Social Security and Medicare. Politics is a great sport, but one with far reaching and important implications for all Americans. Who are the left and right and what do they believe? To understand what each side of the isle believes is a good way to solidify where YOU stand.
Ms. Feldman pointed out that “no matter how flat the pancake, there are always two sides.”
With a visual demonstration and explanation of the ideologies of both political parties and a walk through the history that brought us to today, Ms Feldman worked to clarify how policies impact where we stand with the two largest and most successful federal programs we have, Social Security and Medicare.
The point was made that the word “entitlement” is being used to raise alarms about affordability and sustainability of the programs that most effect seniors, Social Security, Medicare and Medicaid. These are three very different programs with different forms of financing that are being lumped together. The point was made that they are not the only “entitlements” out there and each is very different from the others. Health care is expensive for everyone, not just seniors and that should be the issue.
Social Security is one of the most successful programs this country has ever had. It was designed to be a safety net that is a guaranteed benefit for workers and their families. It is “social” insurance that is not in crisis. We can and should address the shortfall that is projected to begin in 2047. Privatization of Social Security is a whole other issue.
Medicare has also done exactly what it was intended to do, provide affordable healthcare to those 65 years of age and older. Medicare has actually kept costs down more then the private sector. The rising cost of health care is an issue for all ages, not just seniors.
Ms. Feldman inspired us to look at the coming election as an opportunity to focus on the issues. There are clear differences between the two candidates. “There is no right and wrong, just left and right.” Listen to what each candidate is saying and understand the ideology from which they are coming. Then we must think about what we want not only for ourselves, but for the next generation. Decide what you want and fight for it.
Past Opinions
Social Security is Essential to Low and Middle Income Americans
Social Security is an insurance program that beneficiaries pay for, not a welfare/entitlement program. It is a common insurance policy that shares the risks among all beneficiaries to provide guaranteed funds to help with life's misfortunes, such as getting old and/or disabled. Employees and employers and the self-insured pay into it through payroll deductions /or fees.
Current and future retirees, and their families, will need strong Social Security and Medicare systems, access to affordable long-term care, and strong pension systems in order to attain a decent quality of life. However, rising health care and prescription costs, the gyrations of the stock market, above-inflation increases in energy and transportation costs and lower housing values threaten the stability of retirement. Disappearing and decreasing company and organization pensions are putting more holes into the retirement security of many Americans. These pensions are now providing only about 10% of the income of retired Americans.
Further, most employer defined benefit pensions are not indexed to inflation, which means their real value declines over time. A growing number of retirees have income from 401(k) accounts. However such income is subject to market fluctuations and is not guaranteed against inflation as is Social Security with its annual cost of-living adjustment (COLA). The Social Security Trust Fund invests in the safest investment available - U.S. government securities. Those securities are legal obligations of the U.S. to pay principal and interest to the holder of the bonds.
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