A Few Facts About Social Security
Social Security was
never meant to be the sole source of retirement income
For a secure retirement, AARP recommends people create four pillars
of support: Social Security, pensions and savings, continued earnings,
and health insurance. That said, Social Security provides at least half
of the income for two thirds of older people in the U.S. and is virtually
the only source of income for one out of five older Americans. The percentage
of Hispanics totally dependent on Social Security is even greater, at
38 percent. The benefits are also more crucial to Hispanic women because
on average they live longer, have lower salaries, and are more likely
to take time off from the labor force for caregiving.
Social Security benefits are progressive
Social Security benefits provide low-income workers with a greater
percentage of their preretirement wages than higher-income workers.
By contrast, privatization or "carve-outs" are not progressive. The
accounts of high-income earners, with more money to invest, would build
more rapidly than those of lower-income earners.
Social Security isn't just for retirees
Social Security also assures income to disabled workers and children
of deceased, retired or disabled workers. It provides survivor protection
equivalent to a $374,000 life insurance policy for a worker with an
average income, a spouse, and two small children. That same worker's
disability benefits are worth more than a $234,000 disability policy.
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