This is a 'feel-good' piece of legislation with strong bipartisan support. Biden will sign it. It's been in the works for a while and I don't think the timing is tied to the election.
As for how I feel about it, it's mixed. It would have been helpful to have Social Security income in addition to a government pension when my mom needed assisted living. But, on the other hand, while we think of Social Security as a sort of savings account, in actuality it is a tax and taxes are not designed to treat everyone the same. Some taxes help society as a whole, not individuals. There is a lot about Social Security that isn't 'fair' and I hope we can do comprehensive reform before it's too late.
One of the most fair things that should happen is for politicians to put back all funds that were taken from the Social Security fund for other uses, with interest. That money should never have been able to be used other than for its initial intent.
Other solutions could be having no income cap for deductions, eliminate collecting as early as 62 unless there are health or other pressing financial reasons. Even though the monthly payments are reduced for retiring early, they are paid for a longer period of time with no additional monies coming in. As for government workers and those not paying into the fund, make it mandatory and eliminate government pensions. Let all employees pay in to Social Security.
Good ideas. I haven't thought it through, but I do believe adjusting it for today's life expectancy deserves consideration. It was not intended to paid out for 20-30 years.
Edited to say was not totally correct in what I thought I knew about life expectancy. I checked my facts here and should have done before posting based on hearsay.
https://www.ssa.gov/history/lifeexpect.html
This post was edited by Jane S at December 24, 2024 7:50 PM MST
It is actually getting adjusted as the age to collect the maximum amount now is 67. When I retired, it was still 65. In truth, Social Security was never meant to be the sole source of income when someone retired. It was supposed to supplement what people saved on their own. I'm not positive, but I think the government pension was instituted because typically, government workers were paid lower wages than private industry. Their pay has since been increased, but the pension perk remained. I think if someone does not contribute to Social Security because they have a government pension, and they then go to work in private business where they are required to contribute, the amount of their Social Security payment should be calculated on the money earned when they paid into the Social Security system.
This post was edited by Spunky at December 24, 2024 7:02 PM MST
I had totally bought into the myth that life expectancy was lower, so therefore people didn't collect it for very long. I just went to verify this (yes, that's what I do) and was reminded that average life expectancy is not the same as chances of living to a given age if you survive childhood. So, the gradual incremental changes to the age you can collect makes more sense.
Jane S 