The National Bureau of Economic Research released a study on increases to life expectancy and Social Security benefits. This study found that although life expectancy for all would slightly increase in the future, it would remain relatively stagnant for people who are in the lowest 40 percent of lifetime earnings. If poorer people will not see much of an increase in life expectancy than who will? According to study results from the National Bureau of Economic Research, life expectancy for males age 50 who fall into the two highest income brackets will increase by seven to eight years. Compared to those who are in the lowest 40 percent of lifetime earnings, this would result in higher income Americans receiving $130,000 more in lifetime Social Security benefits.
Any thoughts on increasing the retirement age would only widen this gap where wealthy individuals would receive more in Social Security benefits than less wealthy individuals who desperately need it more.
A Fraudless Hearing
In a previous blog post we reported that the Social Security Subcommittee of the House Ways and Means Committee was holding hearings April 26 about fraud within the Social Security Administration. Basically, legislators were looking for data that would prove Social Security is wasteful and millions of people receive disability benefits when they do not deserve to. As we said in that blog, other studies have indicated a very small amount of fraud (less than 1 percent) being involved in all Social Security payments being issued. It was not surprising that massive fraud was NOT discovered and the hearing was pretty boring much to the chagrin of the Republican Party. I am sure it will not be too long before the Republicans dig-up a new way to criticize and embellish something Social Security is doing in the near future.
