Social Security faces challenges including a projected shortfall starting in 2033. It was designed to supplement retirement but many now rely on it solely. A proposed solution phases out Social Security benefits by 10% for those earning over $50,000 annually at retirement, increasing the phaseout amount by income level. This could save about $30 billion annually and allow Social Security to remain solvent until 2083 by addressing issues from both increasing lifespans and retiring baby boomers while staying truer to Social Security's original purpose of supplementing retirement income.

1. Social Security Reform
Kevin Waida

2. Quick Facts about Social Security
-Designed as a SUPPLEMENT to retirement
income (SSA, 2014)
-It affects everyone
-Everyone pays into one account, which is
then dispersed to those receiving payments
-Entirely reliant on payments into it

3. Quick Facts about Social Security
-13.8 trillion paid in, 11.3 taken out (SSA, 2014)
-53 million people received benefits last year (CBO,
2010)
-Without SS, 13.8 Million people 65 and older would
be below poverty line (Census Bureau, 2014)
-Average payout per person is approx 14k per year
(SSA, 2014)

4. -You are paying into it
-It may not be there
-It affects someone you know
Why you should care about SS

5. Stock Issues: Harms
-Surpluses were spent, and baby boomers need
money now (Matthews, 2013)
-Social Security is going to run out between 2033-
2036 (CBO 2011)
-People are living longer: Female:86 Male:84
(SSA)
-People getting the most SS are the ones who don’t
need it

6. Stock Issues: Inherency
#1: Structural inherency
-Because of the way government has SS
structured, people are drawing out more
money than they are paying in
-We are currently taking in about 23%
less than we are paying out each year.
(Vernon, 2013) (approx. 40 billion) (SSA, 2014)

7. Stock Issues continued
Attitudinal Inherency
-Belief: People who pay the most in should
receive the most in return
-Ignores the basic principle of Social Security.

8. Blame
Structural
-Government spent surplus on items of
need at the time but never replenished.
(Matthews, 2013)

9. Cure
-Best solution: Age and baby boomers
-Phaseout of SS benefit: Starting at 10% at 50k yearly
earned income at retirement and increasing 10% every
20,000 of earned income later.
-Starts January of 2015

10. *2777 is current max benefit, All benefits clulated using social security calculator on socialsecurity.gov **Approximately;
according to data by Wall Street Journal and US census from 2014
Income range
when entering
social security
(In thousands)
Average SS
benefit per month
Average amount
received per year
Phaseout amount Amount of
payment reduced
per year
# of people in that
range over the
next year
money saved to
be put towards
future social
security
50-69 1725.25 20,703 10% 2,070.30 441,000** 913M**
70-89 2090 25,080 20% 5,016 238000** 1.2B**
90-109 2340 28,080 30% 8,424 306000** 2.5B**
110-129 2517.5 30,210 40% 12,084 204000** 2.4B**
130-149 2648 31,776 50% 15,888 170000** 2.7B**
150-169 2730.5 32,766 60% 19,659.60 102000** 2B**
170-189 2770 33,240 70% 23,268 204000** 4.75B**
190-209 2777* 33,324 80% 26,659.20 204000** 5.44B**
210+ 2777* 33,324 90% 29,991.60 272000** 8.16B**

11. Solvency
The cure would save approx. 30 billions dollars
per year.
It would allow social security to last until at
least 2083
Eliminates baby boomers problem

12. Costs vs Benefits
Costs:
-People who pay
more into it get less
out
-Feels like a welfare
program
Benefits:
Addresses short term
needs (baby boomers)
and long term needs
(age growth)
-Goes back to social
security basics

13. Conclusion
Social Security is diminishing
There is no current solution
The solution must solve the two big problems
(life expectancy and baby boomers)