Analysis of presidential nominee Joe Biden’s Social Security Plans
Robert Powell, CFP®
A new report by the Urban Institute analyzes Democratic presidential nominee Joe Biden’s Social Security reform plans. The brief estimates the plans’ potential impact on beneficiaries, program revenues, and program costs. The study also explores how Biden’s Supplemental Security Income (SSI) proposals might reduce poverty for older adults and people with disabilities.
A few key findings include:
· Biden’s many Social Security plans would improve financial security for older adults and people with disabilities, lifting more than 1 million Social Security beneficiaries out of poverty in 2021.
· Urban researchers project that Biden’s proposals would cut the poverty rate for adult Social Security beneficiaries over the coming decades by more than half.
· The proposal would close about a quarter of Social Security’s long-term funding shortfall and extend the life of the program’s trust funds by about five years.
· The projections show that Social Security would collect 12 percent more revenue under Biden’s plan than the current law would in 2040 and 16 percent more in 2065.
· Biden’s plan would increase total projected federal and state income and payroll tax collections 2.4 percent in 2065; total income and payroll taxes collected from taxpayers with incomes between $500,000 and $1 million (in 2018 inflation-adjusted dollars) would increase 4.1 percent.
· Biden’s plan would boost median benefits 27 percent for beneficiaries in the bottom fifth of the lifetime earnings distribution compared with only 14 percent for beneficiaries in the top three-fifths of the lifetime earnings distribution.
The full study can be found here: https://www.urban.org/research/publication/how-would-joe-biden-reform-social-security-and-supplemental-security-income.