Today, three new studies were released examining the impact of Republican Social Security privatization plans. All three reports find privatizing Social Security and turning it over to the whims of Wall Street, would cut Social Security benefits for seniors.
According to the Chief Actuary of Social Security in a report for Congressman Earl Pomeroy (D-ND), Chairman of the Ways & Means Social Security Subcommittee, Republican proposals—including those by Budget Committee Ranking Member Rep. Paul Ryan (R-WI) and House Republican Leader John Boehner (R-OH)—would result in Social Security benefits cuts ranging from 10% to as high as 50%, with workers losing nearly 30% of their Social Security benefits on average. Read the report»
The Center on Budget and Policy Priorities analysis confirms and builds on those findings—showing that the Ryan plan would cut benefits for 70% of Social Security recipients, just by basing benefits for new retirees on changes in prices rather than changes in wages. Social Security benefits for a medium-earning retiree would be cut $350 a month (someone earning $43,000 in today’s terms–once the plan is fully phased-in, in 2080):
And that does not include the Ryan plan’s proposal to increase the full retirement age, which cuts benefits for all Social Security beneficiaries even further. Read the report»
Finally, a report released by Joint Economic Committee Chairwoman Carolyn Maloney (D-NY) finds that two central elements of the Social Security proposals put forth by Republican lawmakers—privatization and progressive price indexing—would result in benefit cuts for millions of middle-income workers, jeopardize the solvency of the Social Security Trust Fund and undermine the program’s ability to keep millions of Americans from living in poverty. And with privatization, retirees’ benefits will be subject to fluctuations in the performance of the stock market: