Lifetime redistribution under the social security program

a literature synopsis by Dean R. Leimer

Publisher: Social Security Administration, Office of Research, Evaluation and Statistics in Washington, D.C

Written in English
Published: Pages: 22 Downloads: 532
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Subjects:

  • Social security -- United States.,
  • Income distribution -- United States -- Effect of social security taxes on.,
  • Social security taxes -- United States.

Edition Notes

StatementDean R. Leimer.
SeriesORES working paper series -- no. 81
ContributionsUnited States. Social Security Administration. Office of Research, Evaluation, and Statistics
The Physical Object
Pagination22 p.;
Number of Pages22
ID Numbers
Open LibraryOL16636492M

  Social Security Secret No. 1: The $68, You Could Be Missing. A major change is coming to retirement in The federal government is using an obscure clause buried in . redistribution from Social Security occurs within, rather than between, households.” Ideally, the assessment of the redistributive impact of social security programs should be based on the comparison of income distribution with and without social security. 5 This is not. Social Security, in , was intended to provide for elderly individuals without adequate sources of income. And it has a “progressive” benefit schedule that replaces a higher percentage of past earnings for those with low past earnings than for those with high past earnings. Arguably the most successful program of the modern welfare state, Social Security has been enormously successful in lifting the elderly out of poverty. Thirty years ago, almost 30% of the elderly were in poverty, a poverty rate that was more than twice as high as the rate for the population as a whole. Today, in contrast, only about 12% of the elderly are subject to poverty, a rate that is Author: Kathryn L. Moore.

Income redistribution from social security/ by Don Fullerton and Brent Mast. p. cm. Includes bibliographical references. ISBN (pbk.: alk. paper) 1. Old age pensions—United States. 2. Social security—United States. 3. Income distribution—United States. 4. Distributive justice—United States. I. Mast, Brent D. II. Title. Benefits are based on earnings history rather than contributions, and each successive generation of workers has faced higher lifetime Social Security tax rates than the previous one did.   That’s a sea change from what Social Security’s architects envisioned in the s. “The Social Security program is intended to be primarily a required-savings program and not primarily an income-redistribution program,” says William Reichenstein, business professor emeritus at Baylor.   The average Social Security benefit for an individual in the top quarter of the income distribution was $16, in An income based means test that reduced the average Social Security benefit for this group by about $5, would reduce benefits by about 30 percent on average.

  Social Security and Medicare have transferred those trillions because they have been partial Ponzi schemes. After Social Security’s creation, those in or near retirement got benefits far exceeding their costs (Ida Mae Fuller, the first Social Security recipient, got times what she and her employer together paid in “contributions”). wage workers who retire early under the current system. The Sup- plemental Security Income (SSI) program offsets to a large degree the reduction in OASI benefits for these low-wage workers thereby substan- tially increasing their life-cycle Social Security wealth relative to its level at age 65 (Burkhauser and Smeeding ).   The final part of the book, Part 4, has some other miscellaneous topics such as how to check your earnings records (4 page chapter 14), how Social Security is taxed (4 page chapter 15), how Social Security should affect your asset allocation (3 page chapter 16), and a few “do-over options” (4 page chapter 18) like withdrawing an application.   The Social Security Trustees currently project that in , the Social Security Trust Fund will contain reserves of more than $5 trillion (which is more than $3 trillion in today's dollars). Assertion: "Rather than ending with the life of the beneficiary, it [an individual account system] can be a means of wealth accumulation and long-range.

Lifetime redistribution under the social security program by Dean R. Leimer Download PDF EPUB FB2

Social Security and Redistribution. With annual expenditures of over $ Billion, Social Security is the largest government program in the U.S.

Social Security is also the single largest source of income for the elderly, accounting for 40 percent of all income going to individuals age 65 and above and over 80 percent of income for the poorest quintile of families. ———. "Historical Redistribution Under the Social Security Disability Insurance Program." Social Security Bulletin 61(3): 3– ———.

"Lifetime Redistribution Under the Social Security Program: A Literature Synopsis." Social Security Bulletin 62(2): 43– Leimer, Dean.

Social Security Does Not Redistribute Income "Social Security does not redistribute from people who are rich over their lifetime to those who are poor. In fact, it may even be slightly regressive." Many people think that Social Security is a progressive program which redistributes income from the rich to the poor.

Historical Redistribution Under the Social Security Disability Insurance Program Dean R. Leimer ’ This study uses Social Security administrative data on historical taxes and benefits by year, age, gender, and race for an expost analysis of redistribution under the Disability Insurance (DI) program.

Lifetime redistribution under the social security program book relation. In their new book, Income Redistribution from Social Security, Don Fullerton, the Addison Baker Duncan Centennial Professor of Economics at the University of Texas-Austin, and Brent Mast, a.

Here's What You'd Be Paid in Lifetime Social Security Benefits by Claiming at Age 70 Being patient could put a lot of extra lifetime income in your pocket.

Social Security was designed to redistribute income from those with higher lifetime earnings to those with lower lifetime earnings. The reason is obvious: the system was created to ensure an adequate retirement income for the elderly.

Less obvious is how Social Security's many provisions interact to achieve redistribution. This Straight Talk summarizes the most comprehensive study of those. This paper discusses the redistributive impact of the Dutch social security system on lifetime basis.

Net benefits appear to be positive for the birth generations up to Social insurances show a declining net benefit, whereas for occupational pensions the reverse holds. It is generally assumed that flat-rated social security schemes are more redistributive ones than wage-related Cited by: 6.

If Jim dies at 80, his lifetime income from Social Security at these ages would be $, $, and $, At this point, waiting is beginning to pay off for Jim.

Meanwhile, Social Security’s actuaries say the “trust fund” will be depleted byforcing a benefit cut of at least 20%. The Democrats’ proposal shores up Social Security sooner, and for the long term. And that’s according to a Republican, Andrew Biggs, who was a top Social Security official under Dubya Bush.

Downloadable (with restrictions). This paper uses earnings histories obtained from the Social Security Administration and linked to the survey responses for participants in the Health and Retirement Study to investigate redistribution under the current social security benefit formula.

We find that as advertised, at the level of the individual respondent, the benefit formula is progressive. Redistribution of income and wealth is the transfer of income and wealth (including physical property) from some individuals to others by means of a social mechanism such as taxation, charity, welfare, public services, land reform, monetary policies, confiscation, divorce or tort law.

The term typically refers to redistribution on an economy-wide basis rather than between selected individuals. sources of redistribution in Social Security, the data and analytic measures, and the methodology for generating the lifetime earnings upon which payroll taxes and Social Security benefits are based.

Downloadable. Because its benefit formula replaces a greater fraction of the lifetime earnings of lower earners than of higher earnings, Social Security is generally thought to be progressive, providing a “better deal” to low earners in a cohort than to high earners.

However, much of the intra-cohort redistribution in the U.S. Social Security system is related to factors other than. Lifetime income redistribution by social security. Nelissen JH. "This paper discusses the redistributive impact of the Dutch social security system on lifetime basis.

Net benefits appear to be positive for the birth generations up to Social insurances show a declining net benefit, whereas for occupational pensions the reverse by: 6.

This study uses Social Security administrative data on past earnings and benefits by year, age, sex, and race to analyze historical redistribution under the Old-Age and Survivors Insurance program across and within cohorts born through the year Author: David Leimer.

Get this from a library. Redistribution in the current U.S. Social Security system. [Jeffrey B Liebman; National Bureau of Economic Research.] -- Abstract: Because its benefit formula replaces a greater fraction of the lifetime earnings of lower earners than of higher earnings, Social Security is generally thought to be progressive, providing.

This paper uses earnings histories from the Social Security Administration, linked to the survey responses for participants in the Health and Retirement Study, to investigate redistribution under. social security, government program designed to provide for the basic economic security and welfare of individuals and their dependents.

The programs classified under the term social security differ from one country to another, but all are the result of government legislation and all are designed to provide some kind of monetary payment to defray a loss of or a deficiency in income.

This paper uses earnings histories from the Social Security Administration, linked to the survey responses for participants in the Health and Retirement Study, to investigate redistribution under the current social security benefit by: HeinOnline -- 61 U.

Pitt. Rev. UNIVERSITY OF PITISBURGH LAW REVIEW [Vol. INTRODUCTION Arguably the most successful program of the modern welfare state, I Social Security2 has been enormously successful in lifting the elderly out of poverty.3 Thirty years ago, almost 30% of the elderly were in poverty.

InSocial Security--officially known as the Old Age and Survivors Insurance Trust Fund (OASI) program--took in a whopping $ billion dollars in taxes and interest and paid out $ billion dollars in benefits. ("Survivors," by the way, are the spouse and children under eighteen who survive the death of a primary breadwinner.).

“As a matter of justice over the life cycle, the [Social Security] program engages in too much redistribution from younger to older workers, compared with the ideal program, which would link.

Note that the Social Security benefits statement that is now mailed every five years to those un and annually to those over 60 (unless you’ve signed up for Author: Janet Novack. Introduction. In the Social Security reform debate, the issue of how minorities fare under the program's rules has surfaced intermittently.

Two recent Heritage Foundation papers have returned to the question of how Social Security treats minorities (Beach and Davis, a, b). Author's Response to Mr. Olsen, I am sorry you didn't like "Social Security: Maximize Your Benefits".

As you noted in your Customer Review of "Social Security Maximize Your Benefits", Table on page 45 uses a spousal reduction factor of 30 percent (not the 25 percent used for the primary wage earner) for early retirement of individuals with birth years between and when the full /5(14).

Social Security’s defenders routinely laud it in moral terms, as “our most successful program of social reform,” [] a humane, compassionate response to the needs of the elderly. One work puts it this way: None of us knows his or her fate.

Today’s good fortune can turn into tomorrow’s disability. Most of us will gradually move from vigor to diminished capacity, and we will need : John Attarian. FILE - In this Feb.

11,file photo rolls of blank social security checks run through printers and are processed at the U.S. Treasury's Financial Management services facility in Philadelphia. The Social Security Benefits Handbook is available in print (Sourcebooks, 5th ed.).

Also available in print is the Social Security Answer Book, a collection of frequently asked questions with straightforward answers. They can be purchased in bookstores or by clicking on.

This article concerns proposals to change the Social Security system in the United Security is a social insurance program officially called "Old-age, Survivors, and Disability Insurance" (OASDI), in reference to its three components.

It is primarily funded through a dedicated payrolltotal benefits of $ billion were paid out versus $ billion in income, a. This paper reviews why Social Security fails to lift more aged low-wage workers and people of color out of poverty. It examines the payroll tax and benefit formula and reviews literature about OASDI outcomes by race, gender, and earnings level.

It describes how mortality, earnings, disability, childbearing, immigration and emigration, and marriage patterns all differ across U.S.

racial/ethnic.Social security is the largest and perhaps the most popular program run by the federal government. Given the projected increase in both individual life expectancy and sheer number of retirees, however, the current system faces an eventual overload. Alternative proposals have emerged, ranging from reductions in future benefits to a rise in taxrevenue to various forms of investment-based.Social Security and Medicare Taxes and Benefits over a Lifetime – Update The following tables update estimates for the expected present value of lifetime benefits and taxes for Social Security and Medicare for For this analysis, the demographic and economic assumptions of.