Retirement in Crisis and how Expanding Social Security can Help

RETIREMENT IN CRISIS AND HOW EXPANDING SOCIAL SECURITY CAN HELP Social Security makes up at least 90% Nearly 67% won't be able to maintain their standard of living -- including health and long-term care costs-- in retirement 2/3 of recipients rely on Social Security for at least 50% of their income of the income received by 36% of seniors RETIREMENT SAVINGS ACCOUNTS REINFORCE ECONOMIC INEQUALITY Source: Analysis of Survey of Consumer Finance microdata $350,000 Private retirement accounts, subsidized • $308,674 by all taxpayers, have primarily served those who need help the least, while failing $300,000 most Americans. TOP $250,000 ECONOMIC POUCY INSTITUTE 4TH $200,000 MIDDLE TOP 2ND $150,000 BOTTOM $100,000 FOURTH • $66,964 + $34,981 $12,182 $7,543 $50,000 MIDDLE SECOND воттом $0 1989 2010 1975 NOW 50% of workers had pensions That figure is closer to 20% 52% of Americans have less than $10,000 in savings PERCENT OF HOUSEHOLDS AT RISK OF DOWNWARD SOCIAL MOBILITY IN RETIREMENT Nearly Twice as Many Are at Risk Today as In the 1980s Low And Middle Income Americans Are Most At Risk 53% 61% 54% 53% 38% 44% 40% 30% 30% 20% Low Income Middle High Income 1989 2001 2010 Income Source: National Retirement Risk Index, Center for Retiroment Rosearch at Boston Colloge. "At Risk" is a measure of households whose projected roplacement rates are more than 10% below NRRI targets. SOCIAL SECURITY IN CHAINS In April 2013, President Obama proposed a budget that would CUT Social Security and HURT Senior Citizens by not accurately measuring inflation rates and lead to income tax INCREASES for ALL working Americans by using CHAINED CPI. CPI: CONSUMER PRICE INDEX A formula that looks at Itt's used to make how the prices of stuff we need (le: food) change over time cost-of-living adjustments (COLAS) in programs such as Social Security CHAINED CPI Lower rate of inflation by NOT taking into account the RISING COSTS of many items Assuming when prices for one thing go up, people will settle for cheaper substitutes (le: if beef that impact Seniors like food and medication prices go up, theyll buy tuna fish and less beef) WHAT SENIORS COULD LOSE EACH YEAR THE AVERAGE WORKER RETIRING AT 65 COLLECTED $17,520 LAST YEAR Chart CNNMONEY -$1,612 would see 6.5% less, Source: National Women's Law Center or $1,139, by age 85 -$1,384 -$1,139 if Chained CPI were -$894 in effect BY AGE 95 their benefits would -5.1% -6.5% -7.9% -9.2% be cut by 80 85 90 95 AGE $1,612 (9.2%) "Difference In Annual Benefit Under Chained CPI For Recipient Collecting $17,520, The Bonefit Of An Average Lifotime Earner, In 2012. Calculations Are In 2012 Dollars. CUMULATIVE SOCIAL SECURITY BENEFIT CUTS FROM CHAINED CPI FOR AVERAGE WORKER RETIRING AT AGE 65 Current CPI LAME 17500 COST-OF-LIVING Cumulative Cut of $28,015 by Age 95 пооо Chained CPI ADJUSTMENTS (COLAS) would be lowor with the Chained 16s00 CPI than with current CPI 16000 15500 1500 75 es Age of Social Security Beneficiary Source: Social Security works based on Social Security Administration, 2012 TWO BILLS, ONE PURPOSE: SUPPORTING AMERICANS We are urging Congress to SUPPORT Sen. Tom Harkin's (D-IA) and Sen. Mark Begich's bills to EXPAND Social Security benefits, rather than cut them like President Obama PREVIOUSLY PROPOSED. SCRAPS THE EXTENDS OTHER BENEFITS INCREASES CPI-E CAP SOLVENCY SEN. TOM HARKIN (D-IA) BILL "Strengthening Social 2$ 2$ 2$ Security Act of 2013 (S.567 and HR.3118) SEN. MARK BEGICH (D-AK BILL) "Protecting and 2$ 2$ 2$ Preserving Social Security Act" (S.308 and HR649) BOTH Formula for the annual cost-of-living adjustment (COLA) that Bills CPI-E more accurately reflects the expenses of Elderly SUPPORT persons ANNUAL SOCIAL SECURITY BENEFITS UNDER CHAINED CPI, CURRENT LAW AND CPI-E FOR AVERAGE EARNER RETIRING AT AGE 65 I CP-E CPI-W (CURRENT LAW) I CHAINED CPI $19,500 $18,011 $19,000 $18,449 $18,094 $18,500 $17,745 -$1,169 $18,000 -$2,791 $17,500 $17,642 $17,000 $17,480 -$1,622 $16,500 $16,985 $16,000 $16,495 $15,500 $16,020 $15,000 65 70 75 80 85 90 95 Source Social security works analyss of social Security Admanistration data, 2012 SCRAP THE CAP: ENSURE THAT THE RICH CONTRIBUTE THE SAME SHARE OF THEIR INCOME TO SOCIAL SECURITY AS THE REST OF US 6.5 6.2% LEGEND: 5.5 4.5 * 35 Contributions 2.82% 2.5 1.41% 1.5 0.74% 0.5 Employee Earnings * $113,700 *$250,000 * $500,000 $1,000,000 RED, BLUE AND PURPLE STATES UNITE TO EXPAND SOCIAL SECURITY Do you support or oppose using Do you support increasing workers Social Security benefits using the CPI-E? Do you support or oppose the chained CPI to calculate scrapping the cap on Social Security contributions? cost-of-living adjustments for Social Security benefits? 2 • KENTUCKY 51% 62% 74% • IOWA 56% 56% 73% • TEXAS 52% 63% 70% • HAWAII 55% 56% 64% • COLORADO 61% 61% 59% Poll conducted by Public Policy Polling (PPP) on behalf of the Progressive Change Campaign Committee (PCCC), Democracy For America (DFA), and CREDO, August 19-21, 2013 VOTERS ACROSS AMERICA ARE UNITING WILL YOU to support these simple, cost effective solutions JOIN US? TO SAFEGUARD SOCIAL SECURITY BROUGHT TO YOU BY: IN PARTNERSHIP WITH: DEMOCRACY FOR AMERICA SOCIAL SECURITY MoveOn.oRG WORKS. DEMOCRACY IN ACTIOW" GHERGICH&Co. strengthensocialsecurity.org | money.cnn.com | epi.org | alfcio.org I growth.newamerica.net | aarp.org | ssa.gov D•D•