Social Security--still the best retirement deal around

[exboyfil]

27. The contributions of the earners between approx. $50K-$115K

have the benefits formula applied at 15%. The simple solution is the remove the cap and make all income above $115K subject to a lower withholding rate (say 2% less than the current rate for all workers). Right now the system is structured for those making $50K-$105K to carry the burden of the lower earners on their backs. This change would spread some of that burden to the higher earners. I would also argue that the rates for everyone be adjusted to a pay as you go with drawdown of the Trust Fund over the next 10-20 years or so. Going forward their will be no such thing as trust fund, and withholding rates should be pegged forever to some maximum rate (say 7.5%/7.5%). In case in the future the withholdings do not meet the payouts, then benefits should be reduced over the first $10,000 by the shortfall.

Few people understand how benefits are calculated. That should be the first step in any education program regarding S.S. It should be taught in every high school in the nation.