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Publication Date: December 2004
Publisher: Center on Budget and Policy Priorities (Washington, D.C.)
Author(s): Robert Greenstein
Research Area: Banking and finance
Keywords: Fiscal future; Financial projections; Senior citizen; Retirement
Type: Report
Abstract:
Increasing attention is being accorded to a proposal to make a major change in how Social Security benefits levels are set. Under a proposal that President Bush’s Social Security Commission put forward in 2001, Social Security benefits would shrink dramatically over time as a share of workers' pre-retirement wages, replacing a much smaller share of pre-retirement wages for workers who retire farther into the future than for workers who retire sooner. The gap between Social Security benefits and pre-retirement wages thus would widen over time.