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How Would the President's Fiscal Commission's Social Security Proposals Affect Future Beneficiaries?

Author

Listed:
  • Melissa M. Favreault

    (Urban Institute)

  • Nadia S. Karamcheva

    (Urban Institute)

Abstract

Using the Dynamic Simulation of Income Model, we project how Social Security benefits and payroll taxes would change were Congress to enact the National Commission on Fiscal Responsibility and Reform's proposal. We show benefits at several points in time and relative to pre-retirement income, a low-income standard, and lifetime payroll tax contributions. The proposal's projected effects are particularly deep relative to current law scheduled for those reaching retirement in several decades. Projected benefit reductions relate closely to lifetime earnings: Lower earners are largely shielded, higher earners face significant reductions. Projections are sensitive to workers' assumed responses to certain proposal provisions.

Suggested Citation

  • Melissa M. Favreault & Nadia S. Karamcheva, "undated". "How Would the President's Fiscal Commission's Social Security Proposals Affect Future Beneficiaries?," Project Reports 1, Urban Institute, Program on Retirement Policy.
    • Handle: RePEc:rbn:report:1
    Note: Creation-date:2011-12
    as

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    References listed on IDEAS

    as
    1. Congressional Budget Office, 2011. "CBO's 2011 Long-Term Projections for Social Security: Additional Information," Reports 41644, Congressional Budget Office.
    2. Mastrobuoni, Giovanni, 2009. "Labor supply effects of the recent social security benefit cuts: Empirical estimates using cohort discontinuities," Journal of Public Economics, Elsevier, vol. 93(11-12), pages 1224-1233, December.
    3. Congressional Budget Office, 2011. "CBO's 2011 Long-Term Projections for Social Security: Additional Information," Reports 41644, Congressional Budget Office.
    4. Melissa M. Favreault & C. Eugene Steuerle, 2008. "The Implications of Career Lengths for Social Security," Working Papers, Center for Retirement Research at Boston College wp2008-5, Center for Retirement Research, revised Feb 2008.
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