Lifetime Social Security Payouts

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Over at the Tax Policy Center, Gene Steuerle and Stephanie Rennane quote from a CBO report about how total lifetime Social Security payouts are increasing:

In today’s dollars, CBO calculates that a single person born in 1960 (assumed to retire at age 65 in 2025) who earns close to median wages over their lifetime is scheduled to receive approximately $250,000 in lifetime Social Security benefits, while a similar earner born in 2000, expected to retire in 2065, would receive around $420,000.

Does this show how generous Social Security payments have gotten? No. Just the opposite. Real per-capita GDP in 1960 was about $15,000. In 2000 it was $39,000. That’s a 160% increase. Conversely, the real increase in total Social Security payouts over an average lifetime is going up only 70% for retirees born in those two years.

Social Security as a program will cost us more in the future than it does now. Longer lifespans are a small part of the reason, and the fact that the huge baby boom generation is about to retire is a much bigger reason. But lifetime payouts, far from spiraling out of control, are considerably stingier now than in the past. We’re a far richer country than we were in 1960, but average wages haven’t kept up with productivity growth for a long time — and since Social Security payouts are tied to average wages, not economic growth, benefits haven’t kept up with economic growth either. Reducing them even further by raising the retirement age would merely be compounding one injustice with another.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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