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Some proposals to address Social Security solvency would adjust the calculation of initial benefits. Others adjust benefit growth over time.
Social Security benefits are calculated as a percentage of lifetime average earnings. Policymakers consider two factors when establishing the calculation of lifetime average earnings.
Older women experience higher poverty rates than older men. They also, as a rule, receive lower Social Security benefits.
From time to time, Social Security’s long-term solvency challenges have been used to justify basic structural changes.
The federal government subsidizes and incentivizes retirement savings through tax benefits for both individuals and employers.
Some employers, mainly larger and mid-sized ones, offer workers access to a retirement plan.
Employers and policymakers can take steps to ensure that workers can balance work with other responsibilities such as providing care or managing an illness.
Social Security affords vital income protection to workers and their families. But it is more than a retirement program.
Successful proposals to achieve Social Security solvency and adequacy should adhere to the following principles. These principles should guide any updates to Social Security.