No. of Recommendations: 3
daoffer:

eWhartHog >>Cut benefits on a means-tested basis.<<

"This is almost what I agree with. Instead of means, though, it should be earned income while you were working. Lower income people should get close to what they made while working since presumably they would have had a tough time saving for retirement. Higher income people would get more in $ but still a much lower percentage of what they had earned while working. Since they had a higher income, they presumably had more opportunity to save for a better retirement. This wouldn't punish people for saving which is my strong objection to the current plans for setting benefits relative to post retirement means. Since I consider this a fair and rational way to work through this mess, I doubt it will ever happen."

You are, unfortunately, already behind the times. SS has operated that way for years already WRT to calculating benefits.

Social Security is expected to replace about 40 percent of pre-retirement earnings of average earners; 80 percent for the lowest earners; and 27 percent for those at the maximum taxable wage base of $80,400, according to the Social Security Administration.

http://cbs.marketwatch.com/news/story.asp?siteid=mktw&dist=nwtam&guid=%7B4D8A6678%2D1120%2D46C7%2D9E5B%2DE6ACB01675BE%7D

I am sure that eliminateSS (who posts on the SS reform board) could cite chapter and verse in even more detail.

Regards, JAFO
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