National Press Foundation

Presentation on Reporting
on Aging Issues
Nancy J. Altman
President, Social Security Works
Chair, Strengthen Social Security Coalition
October 17, 2017
Overview
Political Landscape
Background
Common Misunderstandings and
Misinformation
Future Action
Political Landscape: The
Conversation has Shifted
2008 Party Platforms
Democratic:
Retirement and Social Security
We will fulfill our obligation to strengthen Social Security and to make sure that it provides
guaranteed benefits Americans can count on, now and in future generations. We will not privatize it.

Republican:
Social Security
We are committed to putting Social Security on a sound fiscal basis.
 2016 Party Platforms
Democratic Platform
Protecting and Expanding Social Security
Democrats will expand Social Security so that every American can retire with dignity and respectWe will
make sure Social Securitys guaranteed benefits continue for generations to come by asking those at the top to
pay more

Republican Platform
Saving Social Security
everyone knows that [Social Securitys] current course will lead to a financial and social disaster. Current
retirees and those close to retirement can be assured of their benefits. Of the many reforms being proposed, all
options should be considered to preserve Social Security. As Republicans, we oppose tax increases and believe in
the power of markets
Social Security and Congress
There are over a half dozen expansion bills
Social Security 2100 Act has 164 sponsors/cosponsors 85 percent of
Democratic caucus
All but two Democrats voted for a resolution offered in the 114th Congress by
Senators Elizabeth Warren and Joe Manchin, calling for expansion. No
Republicans voted for it.
Donald Trump pledged no cuts to Social Security
But there is evidence to contrary
Actions by Republicans in Congress and Administration belie the promise
Statements
Budgets
Pay-Fors
Background
Social Security is insurance against
the loss of wages in the event of
death, disability, or old age
How Many People Receive Social Security?

More than 60 million people receive Social Security each month,

in one of three categories:
Retirement insurance
Survivors insurance
Disability insurance
Nearly 1 in 5 Americans gets Social Security benefits.
About 1 in 4 families receives income
from Social Security.

9
Social Security Administration (SSA), 2016a; National Academy of Social Insurance, 2016.
Who Receives Social Security?

40.7 million retired workers

8.9 million disabled workers
4.2 million widows and widowers
2.5 million spouses
1.1 million adults disabled since childhood
3.2 million children

10
SSA, 2016a.
Over 16.5 million Americans receive disability and
survivors benefits through Social Security
How Much Does Social Security Pay?
(June 2016)
Average Monthly Average Yearly
By Beneficiary Type: Benefit Benefit

Retired workers $1,348 $16,176

Disabled workers $1,166 $13,992
Widows or widowers (60 or older) $1,292 $15,504
Average Monthly Average Yearly
By Family Type: Benefit for Family Benefit for Family
Retired worker and spouse (62 or older) $2,233 $26,796
Widowed mother or father (under 60) and
$2,639 $31,668
two children
Disabled worker and one or more
$1,793 $21,516
children

SSA, 2016a; SSA, 2016b; U.S. Department of Health and Human Services, 2016.
 How Do Benefits
Replacement Rates for Retired Worker Age 65, 2016
Compare to Earnings?
$140,000
Career-Average Wages $116,123
$120,000
$100,000 Benefits
$76,369
$80,000
$60,000 $47,731
$40,000 32% 26%
$21,479 39%
$20,000 53% $29,897
$24,628
$11,270 $18,579
$0
"Low" "Medium" "High" "Maximum
Earnings Level taxable"

Source: Social Security Administration. 2016.

Replacement Rates For Hypothetical Retired
Workers. Actuarial Note #2016.9. Baltimore, MD:
Social Security Administration, Office of the Chief
2017 Trustees Report

Fully funded for the next 17 years

93 percent funded for the next 25 years
87 percent funded for the next 50 years
84 percent funded for the next 75 years
Arguments for Expansion

Looming retirement income crisis

Income and wealth inequality
Squeeze on middle class families
Americans Face a Retirement Income Crisis

Over half of working-age households unable to maintain standard of living in

retirement (NRRI)
When health and long-term care costs are included, number at risk grows to over two-
thirds
An estimated 70% of Americans 65 and older will one day need long-term care (CMS)
39.6 million working-age households (45%) have no retirement account assets
(NIRS)
Four-fifths (79%) of working households have retirement savings less than one
time their annual incomes (NIRS)
Three-quarters (76%) of Americans say theyre concerned about economic
conditions affecting their ability to achieve a secure retirement. (NIRS)
Growing Number of Working Age Households at Risk
of Being Unable to Maintain Standard of Living in
Retirement
How Many Seniors Rely on Social Security for
Most of Their Income?
84% of all people 65 and older get Social Security.

Over 3 in 5 (61%) beneficiaries of Social Security get

half or more of their income from Social Security.

About 1 in 3 (33%) beneficiaries of Social Security get

almost all (90% or more) of their income from Social
Security.

19
SSA, 2016e: Tables 2.A1 and 9.A1.
If Social Security Benefits are Cut Now Net Social
Security Replacement Rates Will Fall
Medium Earners Replacement Rate at 65
(after Medicare Parts B & D premiums and taxation of benefits)

45
38%
40
Percent of Prior Earnings

35 34%
31%
30
25
20
15
10
5
0
2010 2020 2030
20
Munnell, 2013.
 Increase in Full Retirement Age (FRA) Lowers
Retirement Benefits at Any Age Claimed
140
Percent of Full Benefit Payable

Full Retirement Age 65

120
Full Retirement Age 67
100

80

60

40

20

0
62 63 64 65 66 67 68 69 70
Age When Benefits are Claimed

21
Gregory et al., 2010.
The Debate about Social
Security is a Debate
About Values
Common
Misunderstandings
and Misinformation
Social Security Doesnt Add a Penny to the
Debt
Section 13301 of the Omnibus Budget Reconciliation Act of 1990 states:
Notwithstanding any other provision of law, the receipts and disbursements of
the Federal Old-Age and Survivors Insurance Trust Fund and the Federal
Disability Insurance Trust Fund [i.e., Social Security] shall not be counted as
new budget authority, outlays, receipts, or deficit or surplus for purposes of
(1) the budget of the United States Government as submitted by the President,
(2) the congressional budget, or
(3) the Balanced Budget and Emergency Deficit Control Act of 1985.
Younger workers can count on Social Security

Young workers have current disability and

survivors insurance protection
Evenif Congress took no action, 75 percent
current funded
Future Action/Conclusion

Demonization of people receiving disability

benefits
Impact of 2018 election
No action necessary until 2028, according to best
estimates