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When most workers look at their pay stubs, they can see that the Social Security payroll tax rate is 12.4 percent – with the employee and employer each paying 6.2 percent. But many workers do not know that any annual wages above $106,800 are not taxed by Social Security. In other words, a...
Persistent link: https://www.econbiz.de/10009293653
lower benefits. Since the vast majority of retirees rely on Social Security for the bulk of their retirement income, this …
Persistent link: https://www.econbiz.de/10009322492
This working paper argues that pension funds should adopt a funding principle that is consistent with a return on holdings conditional on the state of the stock market. As will be shown, the expected “conditional rate of return” used in making this assessment will vary depending on the...
Persistent link: https://www.econbiz.de/10009649734
government should strengthen Social Security in ways that increase the retirement security of middle- and working-class Americans …. Particular attention should be paid to improving the living standards in retirement of workers in poorly compensated jobs, who … typically have little or no retirement savings outside of Social Security. Some recent proposals to cut Social Security would …
Persistent link: https://www.econbiz.de/10009359468
The Social Security payroll tax cap is the earnings level above which no further Social Security taxes are collected. The cap is currently at $110,100, though legislation has been introduced in Congress to apply the Social Security payroll tax to earnings above $250,000 (but not between the...
Persistent link: https://www.econbiz.de/10010550996
There have been a number of proposals in policy circles that involve raising the Social Security retirement age. This … increases in longevity. This paper examines the impact of an increase in the retirement age on various demographic groups … retirement age from 67 to 70 (2 months a year for 18 years) on each quintile of the wealth distribution using data from the …
Persistent link: https://www.econbiz.de/10010556771
There is enormous public confusion (much of it deliberately cultivated) about the extent of Social Security’s projected shortfall. Many policymakers and analysts point out that projections from the Congressional Budget Office and the Social Security Trustees show the program to be out of...
Persistent link: https://www.econbiz.de/10008694896
of several policies that seek to address job quality, including universal health insurance, a universal retirement system …
Persistent link: https://www.econbiz.de/10010667720
-market exit among older workers. Raising the retirement age is particularly concerning for near-retirement age workers with such … jobs. Despite the fact that the retirement age increase is supposed to encourage workers to work longer, many workers would … reduced benefits. An increase in the retirement age or other cuts in Social Security benefits are also likely to put a greater …
Persistent link: https://www.econbiz.de/10008492934
– mostly in the form of home equity – which they stood to lose as a result of the crisis. Since they are at or near retirement … benefit structure, 2. Accelerating and extending the increase in the normal retirement age, and 3. Reducing the annual cost …
Persistent link: https://www.econbiz.de/10008526372