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An Interesting Concept: A “flat” Social Security benefit

The topic of Social Security reform is widely discussed these days because Social Security’s Trustees have been warning for decades that the program’s reserve assets will be depleted in the mid-2030’s, and because the economic effects of the coronavirus pandemic have worsened already dire predictions. And although most reform discussion centers around “tweaking” the program to restore it to solvency, there is no shortage of “out of the box” thinking when it comes to reforming America’s premier retirement program. And speaking of “out of the box” thinking, this CNBC article by MacKenzie Sigalos discusses a new proposal to pay all beneficiaries the same amount of benefit – essentially a flat benefit not based upon lifetime contributions to the program, as is done today. Sound interesting?  Click here to read more about how a flat universal Social Security benefit might work.

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