Most of the comments in this forum are stated without much if any supporting data. Most are words (politically correct). Here is more data for those who truly want to evaluate the problem. Understanding the mathematical reason for the problem is the first step in determining a cure. Many think raising the age of retirement is fair (increase life expectancy), but in reality this is another myth.
Some think the income of senior should come totally from income from assets and OASI. They seem to forget that principal should also be part of the "income" structure. To state that a person is poor because they only have $15,000 in income is just plain dumb. Based on mathamatics, the income produced from assets at date of retirement will and should exceed that of the annuity paid that year. However, usually within about six years the annuity paid out each year begins to rapidly exceed the income produced. In other words for those who are over 70, on average, their income should be less than their needs each year. The other part of their needs comes from principal. Therefore, their income should be in the poverty range!
For the Social Security Administrations table on income by married,women, men
For those who think they paid enough as this genration has, check out what OASI would have on account had all generations been subjected to the same OASI rate. Keep in mind this does not take into account the much higher base which would increase this number considerably.
Now one can work backwards and say how much more federal income tax would have been paid had FICA taxes remained unchanged since 1970. Furthermore, we can look at what the effect would be if the base had only been increased for wage growth. However, our governement has already done the calculation for us. It reports that total federal revenues have remained unchanged basically for the past 35 years as a % of GDP (population growth, wage growth). The only difference is how the pie got sliced and who got it.
The deficits of Social Security in the 70's fueled the overall budget deficits. Few know or want to admit OASI spent more than it took in, in OASI taxes from 1970 til 1983.
