Simple Steps to Fix Social Security

By THE EDITORS
NYT

With millions of jobs disappearing in this recession and more people taking early retirement, Social Security is expected to pay out more in benefits in 2010 than it takes in in payroll taxes, an event that wasn’t expected until 2016. This effect may be reversed as the recession eases, but this tipping point reminds us of where things are headed. With more baby boomers retiring, by the end of this decade outlays will exceed revenues every year regardless of the condition of the economy. By 2037, Social Security’s surplus, currently at $2.5 trillion, will be exhausted.

Are there fixes Congress can make to Social Security that are politically palatable?

(See the article here for more.)

Paying More for Benefits

Alicia Munnell

The author, a former member of the Council of Economic Advisers, is the Peter F. Drucker professor of management sciences at Boston College’s Carroll School of Management and director of the college’s Center for Retirement Research.

Despite the financial crisis, Social Security continues to send out monthly benefits to 35 million retirees, 9 million disabled workers and their families, and 6 million families in which the bread winner has died.

(Originals here.)