Social Security solvency
Demystifying the Federal Payroll Tax
Nearly all workers pay it, but very few understand it – the Federal Payroll Tax. With few exceptions,[1] everyone who works and earns pays the federal payroll tax from their earnings – that’s about 175 million American workers. The tax, first…
Social Security: Once upon a time – and Today
Once upon a time, there was no real social security in the United States of America. Oh, there were a few early 19th century attempts at public programs to limit poverty, especially for the elderly. However, all of these early…
Definition Time: “Wage Indexing” and How it Works
Yesterday’s headline post on this site discussed a paper by AEI senior fellow Andy Biggs identifying “wage indexing” as a key culprit in Social Security’s long-term funding problem. As our post pointed out, wage indexing is the process of using…
A Quick Summary of the Insolvency Problem
Social Security’s steadily deteriorating financial situation receives considerable attention in the press, with pundits continually assessing the causes, assigning blame, and discussing the potential implications. At this point, the vast majority of folks receiving Social Security benefits or aging into…
Focusing on the Insolvency Problem: A Look at One of the Fundamental Drivers
In this first part of a two-part study, American Enterprise Institute (AEI) senior fellow Andrew G. Biggs challenges one of the basic narratives associated with Social Security’s steadily eroding financial picture. Specifically, his article addresses the issue of wage indexing…
Innovative Thinking for Social Security Reform
Last week, Senators Bill Cassidy of Louisiana and Tim Kaine of Virginia went public with additional details on their bipartisan proposal to create a separate wealth-generating fund to address Social Security’s long-term funding problem. Their announcement led with this claim: …
Rethinking your decision to file for Social Security.
The gloomy 2025 Board of Social Security trustees report may have nudged you to think about filing for benefits before your full retirement age. If so, you might want to rethink that decision, says the writers at The Motley Fool.…
Social Security Insolvency and the Math Behnd It
A few weeks ago, the Social Security Board of Trustees issued its annual report on the program’s financial status at the end of 2024. As expected, it wasn’t good news. It signaled the loss of another year before the program’s…
A new proposal to solve Social Security insolvency
In an op-ed published Tuesday for The Washington Post, Sens. Bill Cassidy (R-La.) and Tim Kaine (D-Va.) proposed creating an additional investment fund for the Social Security Trust fund. “We propose creating an additional investment fund — in parallel to…
Social Security Full Retirement Age May Be Raised Again
Once again, the lawmakers must make changes to Social Security to prevent benefit cuts. Amongst the changes being considered is raising the full retirement age (FRA). It could affect the amount of your monthly payment and make you work longer.…