SSA: GOP plans to reform Social Security would substantially reduce benefits, especially for higher earners

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WASHINGTON -(Dow Jones)- Republican proposals to overhaul Social Security would substantially reduce expected benefits for people now entering the workforce, according to an analysis from Social Security Administration's chief actuary, released Wednesday.

The analysis focused on proposals from Rep. Paul Ryan (R., Wis.) to overhaul the retirement-insurance program. Ryan has proposed raising the retirement age by linking it to life expectancy, and slowing the growth in Social Security benefit pay-outs by changing the way they are indexed.

A worker born in 1985 whose earnings averaged $43,000 would receive 17% less at retirement than promised under current law, as a result of Ryan's proposal to change the inflation index. His proposed increase in the retirement age would reduce benefits by another 8%, according to the actuary's analysis.

The combined effect of the proposals would be to reduce benefits by 24% for someone at the $43,000 income level, according to a separate study released Wednesday by the left-leaning Center on Budget and Policy Priorities.

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Higher earners would see deeper cuts under the Ryan plan. A worker born in 1985 earning $70,000 would receive 30% less under the indexing change in the Ryan plan, and 8% less under the retirement age increase, according to the actuary's analysis.

http://www.morningstar.com/news/dow-jones/us-markets/201010201654/000658/us-benefit-cuts-seen-likely-under-gop-social-security-plan.aspx

[Obama 2012 1,714]

The government really needs a "you get out what you put in" system here. It really needs to be/should be that simple.

The money needs to be secured with muncipal bonds or something similiar as well where it can have healthy growth.

Young people especially today need to be encouraged to plan for their future and save save save. Hell, I remember back in high school my economics teacher was all about encouraging his students to put money into secure steady growth accounts and did the math on just how $20 a week at that age would turn into over a $million by the time of retirement...

[mawilson 2,133]

Young people especially today need to be encouraged to plan for their future and save save save. Hell, I remember back in high school my economics teacher was all about encouraging his students to put money into secure steady growth accounts and did the math on just how $20 a week at that age would turn into over a $million by the time of retirement...

If Bernanke has his way, your $20 will turn into a million soon enough