The multifaceted nature of Social Security is why she’s optimistic about saving it, she added. First, there is the range of options within the rules. Shedden cited the Social Security at 90 report, which already mapped out many viable legislative solutions in January 2025. A joint study by the AARP, the National Academy of Social Insurance, the National Institute on Retirement Security, and the U.S. Chamber of Commerce, it recommended adjusting the maximum taxable earnings cap, which historically covered 90% of Americans’ income, but now only covers about 80% because of concentrated wealth among the top 6% to 10%. Options include applying payroll taxes to earnings over $400,000 or eliminating the cap entirely, as is done with Medicare. Another option is incrementally raising the worker payroll tax from 6.2% to 7.2%. Surprisingly, raising the full retirement age—which Shedden emphasizes is actually a benefit cut—is not a highly supported policy change.
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Date: Fri Dec 20 08:47:39 2024 -0700