For decades, Americans have been told that Social Security is teetering on the brink. Warnings about a looming mismatch between the program’s revenues and expenses have become part of the Social Security narrative. As a result, it seems like the system is in constant need of reform.
It’s a compelling story, but it’s not the full picture.
To be clear, some concerns are grounded in reality. Yes, people are living longer. Yes, we’re having fewer children. These demographic shifts naturally strain any retirement system, and they’re not unique to the United States. Countries around the world are grappling with similar pressures.
But here’s the part we often overlook: Social Security has delivered four decades of predictable and stable costs and benefits. This is a remarkable achievement in a constantly evolving economy. Our Social Security contribution rates today are based on calculations that shaped the 1983 reforms.
Happy birthday, Social Security! President Franklin D. Roosevelt signed the Social Security Act into law on August 14, 1935, establishing a program that would grow over 90 years to become the foundation of retirement security in the United States. As we celebrate the remarkable accomplishments of Social Security during this anniversary month, it’s also important […]
To commemorate the program’s 90th anniversary, Dan Doonan, Executive Director, National Institute on Retirement Security, issued a statement on the importance of the program and the need for a bipartisan solution to address funding.
Fear-driven decision making, like claiming Social Security early, can undermine long-term retirement security.