7/30/2019 Understanding Social Security Benefit Adequacy: Myths and Realities of Social Security Replacement Rates

1/35

7/30/2019 Understanding Social Security Benefit Adequacy: Myths and Realities of Social Security Replacement Rates

2/35

Bhpwyglcu 9?49 iw Bcdy`fr I`dchvr

dme ucf Jfybduvr Bfmufy du Lfhylf Jdrhm Vmg~fyrguw

Jfybduvr BfmufyLfhylf Jdrhm Vmg~fyrguw

2264 Mhyuc Ndgynds Eyg~f, 5uc N`hhy

Dy`gmluhm, ^D 999?4*5522

#

7/30/2019 Understanding Social Security Benefit Adequacy: Myths and Realities of Social Security Replacement Rates

3/35

7/30/2019 Understanding Social Security Benefit Adequacy: Myths and Realities of Social Security Replacement Rates

4/35

7/30/2019 Understanding Social Security Benefit Adequacy: Myths and Realities of Social Security Replacement Rates

5/35

6

Dnv`` vmefyrudmegml hn ucf hmlhgml efiduf bhmbfymgml nvuvyf Rhbgd`

Rfbvyguw ph`gbw yftvgyfr d ndjg`gdyguw |guc ucf bhmbfpu hn ucf yfp`dbfjfmu

yduf- Ucf yfp`dbfjfmu yduf gr d nyftvfmu`w gm~hafe jfdrvyf hn ucf ~d`vf hn

ucf pyhlydjr ifmfngur uh yfbgpgfmur- Nhy jdmw efbdefr, gu cdr iffm bfmuyd` uh jdmw

ph`gbw jdafyr f~d`vdughmr hn Rhbgd` Rfbvyguw ifmfngu deftvdbw- Gmeffe, jdmw Rhbgd`

Rfbvyguw ph`gbw de~hbdufr efngmf ifmfngu deftvdbw d`jhru fsb`vrg~f`w gm ufyjr hnyfp`dbfjfmu ydufr-4

^gyuvd``w f~fyw Rhbgd` Rfbvyguw ph`gbw efbgrghm, nyhj ucf n`hhy hn gmbhjf pyhufb*

ughm ucf pyhlydj pyh~gefr uh ucf id`dmbf hn deegughmd` udsfr dme bhru bhmruydgmur

uh if fjp`hwfe gm bhyyfbugml gur pyhkfbufe ngmdmbgml rchyund``, gr dnnfbufe iw ucf

yfp`dbfjfmu yduf egrbvrrghm- Hmfr duuguvef uh|dyer yfp`dbfjfmu ydufr bdm frudi`grc

ucf nydjf hn yfnfyfmbf nhy efufyjgmgml |cfucfy d``, rhjf, hy mhmf hn ucf pyhlydjr

nvuvyf rchyund`` bdm yfdrhmdi`w if b`hrfe iw bhmruydgmgml ucf lyh|uc hn gur fspfmeg*

uvyfr- Dbbhyegml`w, ucf yfp`dbfjfmu yduf bhmbfpu bvur uh ucf cfdyu hn |cfucfy de~h*

bdufr nyhj egnnfyfmu pfyrpfbug~fr bdm yfdbc d bhjpyhjgrf dlyffjfmu uh ruyfmlucfm

pyhlydj ngmdmbgml-

D yfp`dbfjfmu yduf, hhrf`w efngmfe, gr ucf djhvmu hn hmfr yfugyfjfmu ifmfngu drd pfybfmudlf hn hmfr pyf*yfugyfjfmu fdymgmlr, dr g``vruydufe if`h|;

4- Rff nhy fsdjp`f gylgmgd Yfmh dme Khmg @d~fyw, Rhbgd` Rfbvyguw dme Yfugyfjfmu Gmbhjf Deftvdbw

#Mdughmd` Dbdefjw hn Rhbgd` Gmrvydmbf, Jdw 9??

7/30/2019 Understanding Social Security Benefit Adequacy: Myths and Realities of Social Security Replacement Rates

6/35

7/30/2019 Understanding Social Security Benefit Adequacy: Myths and Realities of Social Security Replacement Rates

7/35

JFYBDUVR BFMUFY DU LFHYLF JD RHM VMG^FYRGUW

6 #|cfm ucf MYD gr >>' gr bhmrgefyfe uh cd~f yfugyfe hmf wfdy fdy`w dme

cfy dmmvd` ifmfngu gr dekvrufe eh|m|dye dbbhyegml`w- D |hyafy gm 9?2? |ch yfugyfr

du >6 #|cfm ucf MYD gr >6- Rff d`rh Aducw

Yvnngml dme _dv` dm ef \dufy, Rhbgd` Rfbvyguw Ifmfngur dyf Jhefru #Bfmufy hm Ivelfu dme _h`gbw

_yghygugfr, Kdmvdyw 9?44', cuup;((|||-bipp-hyl(bjr(gmefs-bnj8nd:~gf|.ge:22>3; Nvuvyf yfugy*

ffr d`yfdew ndbf h|fy ifmfngur #yf`dug~f uh ucfgy pdru fdymgmlr' dr d yfrv`u hn d ygrgml Rhbgd` Rfbvyguw

yfugyfjfmu dlf dme frbd`dugml Jfegbdyf pyfjgvjr- Ucf BI__ bd`bv`dughmr dyf d`rh pfynhyjfe |guc

yfrpfbu uh ucf drrvjpughm hn yfugyfjfmu du ucf bhmrudmu dlf hn >6- Rff d`rh Khcm D- Uvymfy, Rhbgd`

Rfbvyguw Ngmdmbgml; Dvuhjdugb Dekvrujfmur uh Yfruhyf Rh`~fmbw #DDY_ _vi`gb _h`gbw Gmruguvuf

_fmrghm _h`gbw Bfmufy, Nfiyvdyw 9??7', cuup;((drrfur-ddyp-hyl(ylbfmufy(fbhm(9??7X?4Xrhbrfb-pen-

NGLVYF 9- CGRUHYGBD@ DME RBCFEV@FE RHBGD@ RFBVYGUW YF_@DBFJFMU YDUFR#JFEGVJ*\DLF FDYMFYR'

Rhvybf; I hdye hn Uyvruff r Dmmvd` Yfphy u, 9?49

7/30/2019 Understanding Social Security Benefit Adequacy: Myths and Realities of Social Security Replacement Rates

9/35

JFYBDUVR BFMUFY DU LFHYLF JD RHM VMG^FYRGUW

7

Efngmgml ucf ~d`vf hn ifmfngur gm ufyjr hn yfp`dbfjfmu ydufr du ucf bhmrudmu dlf hn

>6 fder hmf uh ucf bhmb`vrghm ucdu nvuvyf Rhbgd` Rfbvyguw ifmfngur |g`` efb`gmf vmefy

bvyyfmu d| #rff nglvyf 9'-4? Ehgml rh, ch|f~fy, glmhyfr ucf yfdrhmr |cw ucf MYD gr

rbcfev`fe vmefy bvyyfmu d| uh gmbyfdrf1 uh pdyugd``w dbbhvmu nhy gmbyfdrgml hmlf~*guw- D ndg`vyf uh gmbyfdrf ucf MYD uh yfn`fbu gmbyfdrgml `hmlf~guw |hv`e yfrv`u gm d

ef ndbuh gmbyfdrf gm `gnfugjf ifmfngur yf`dug~f uh pyf~ghvr lfmfydughmr- Ucf d``flfe

nvuvyf ifmfngu efb`gmf dygrfr rh`f`w nyhj `d|jdafyr 4732 efbgrghm uh lydevd``w

gmbyfdrf ucf MYD dme mhu nyhj dmw efb`gmf gm ifmfngur uh |hyafyr |ch yfugyf du ucf

MYD- Jdgmudgmgml bhmrudmu yfp`dbfjfmu ydufr du dlf >6 |hv`e yf~fyrf ucgr ph`gbw

efbgrghm dme gmbyfdrf pyhlydj bhrur f~fm jhyf ydpge`w ucdm uchrf rch|m hm ucf

fdy`gfy lydpc- Gu |hv`e d`rh jfdm fnnfbug~f`w lvuugml ucf ngmdmbgd` gjpyh~fjfmur

mh| pyhkfbufe dr d yfrv`u hn Bhmlyfrr cd~gml rbcfev`fe dm MYD gmbyfdrf dr pdyu hn

ucf 4732 yfnhyjr-

Ucgr bhru*gmbyfdrgml rudmedye hn ifmfngu deftvdbw gr mf~fyucf`frr hmf ucdu rhjf

de~hbdufr cd~f dehpufe- Nhy fsdjp`f, d 9??7 pvi`gbdughm hn ucf DDY_ drrfyur;

@gnf fspfbudmbw gmefsgml hn ifmfngur yfrv`ur gm d nd``gml yfp`dbf*

jfmu yduf h~fy ugjf |cfm jfdrvyfe du d ngsfe yfugyfjfmu dlf- Nhy

ucgr yfdrhm, rhbgd` rfbvyguw |g`` pyh~gef d frr deftvduf ifmfngu h~fy

ugjf dr uydegughmd``w jfdrvyfe iw ucf yfp`dbfjfmu yduf bhmbfpud

rwrufj ucdu dbcgf~fr rh`~fmbw |guc d efb`gmgml yfp`dbfjfmu yduf

ehfr mhu pyf~fmu ucf mffe nhy nvuvyf yfnhyjr-44

Ucgr pdrrdlf gr pyfegbdufe hm ucf ~d`vf kveljfmu ucdu gu |g`` pyh~f vmdbbfpu*

di`f nhy Rhbgd` Rfbvyguw ifmfngur uh lyh| du dmw yduf r`h|fy ucdm |cdu gr mffefe uh

jdgmudgm bhmrudmu yfp`dbfjfmu ydufr du d mf~fy*bcdmlgml dlf hn yfugyfjfmu #>6'-Bhvp`gml ucf rudmedyer hn bhmrudmu yfp`dbfjfmu ydufr dme bhmrudmu dlfr gm ucgr |dw

bhmrgefydi`w ydgrfr ucf idy nhy pfybfg~fe ifmfngu deftvdbw-

Gu gr b`fdy, ucfm, ucdu kvru dr igpdyugrdm mflhugdughmr dyf hnufm rdge uh efpfme hm

|cfucfy ucf phrrgig`guw hn deegughmd` uds yf~fmvfr gr hm ucf udi`f, duuguvefr uh|dye

yfp`dbfjfmu ydufr efufyjgmf |cfucfy Rhbgd` Rfbvyguw bhru yfruydgmur dyf dbcgf~di`f-

Nhy dm dlyffjfmu uh if phrrgi`f, ucfyf jvru if ucf phufmugd` nhy d jvuvd``w dbbfpu*

di`f yfrh`vughm hn uydef*hnnr ifu|ffm ucf bhjpfugml bhmbfymr hn ifmfngu deftvdbw

dme bhru lyh|uc-

Ucgr egrbvrrghm d`rh bdyygfr gjphyudmu gjp`gbdughmr nhy bhmrgefydughmr hn gmufy*

lfmfydughmd` ftvguw- Jdgmudgmgml bhmrudmu yfp`dbfjfmu ydufr, |cfucfy du MYD hy du

4?- 9?49 Dmmvd` Yfphyu, rvpp`fjfmud` hm`gmf Udi`f -B

7/30/2019 Understanding Social Security Benefit Adequacy: Myths and Realities of Social Security Replacement Rates

10/35

JFYBDUVR BFMUFY DU LFHYLF JD RHM VMG^FYRGUW

4?

d ngsfe dlf hn yfugyfjfmu, |hv`e `hba gm rvirudmugd` mfu gmbhjf `hrrfr #fsbfrrfr hn

bhmuygivughmr h~fy ifmfngur' nhy whvmlfy pdyugbgpdmur vmefy Rhbgd` Rfbvyguw-

D udi`f pvi`grcfe |guc ucf dmmvd` Rhbgd` Rfbvyguw Uyvruffr yfphyur lg~fr d rfmrf

hn ucf jdlmguvefr hn ucfrf mfu gmbhjf `hrrfr- Gn bvyyfmu ifmfngu rbcfev`fr dyf `fnugm p`dbf, lfmfydughmr mh| fmufygml ucf Rhbgd` Rfbvyguw rwrufj |hv`e bhmuygivuf

yhvlc`w 5-9 pfybfmu hn ucfgy |dlf gmbhjf uh ucf pyhlydj jhyf ucdm ucfw v`ugjduf`w

yfbfg~f gm ifmfngur-49 Ucgr gr ifbdvrf hn ucf uds ivyefmr yftvgyfe uh jdgmudgm bvyyfmu

ifmfngu rbcfev`fr- Gn ifmfngur |fyf gmbyfdrfe uh pyh~gef bvyyfmu pdyugbgpdmur |guc

bhmrudmu yfp`dbfjfmu ydufr du dlf >6, whvmlfy Djfygbdmr mfu gmbhjf hrrfr |hv`e

if lyfdufy ucdm 5-9 pfybfmu-

Gu gr tvfrughmdi`f |cfucfy Rhbgd` Rfbvyguw bdm deftvduf`w pyh~gef gmufmefe

gmbhjf gmrvydmbf pyhufbughmr gm ucf nvuvyf gn gu rviuydbur d mfu hn h~fy nhvy pfybfmu

nyhj ucf gnfugjf fdymgmlr hn whvmlfy lfmfydughmr- De~hbdufr hm ~dyghvr rgefr |g``

ucvr rff ucf yfp`dbfjfmu yduf egrbvrrghm dr bygugbd` uh Rhbgd` Rfbvyguwr `hml*ufyj

nvmbughmgml, |guc rhjf de~hbdufr bhmbfymfe ucdu Rhbgd` Rfbvyguw bdmmhu nvmbughmdeftvduf`w gn yfp`dbfjfmu ydufr efb`gmf, dme hucfyr nfdygml ucdu Rhbgd` Rfbvyguw bdm*

mhu nvmbughm yfdrhmdi`wvm`frr yfp`dbfjfmu ydufr efb`gmf- D bhjjhm nydjf|hya nhy

f~d`vdugml ifmfngu deftvdbw jvru if nhvme-

Rhbgd` Rfbvyguwr bvyyfmu ruduvuhyw nhyjv`d nhy jdgmudgmgml bhmrudmu yfp`dbf*

jfmu ydufr |dr mhu dm hyglgmd` nfduvyf hn ucf pyhlydj- Ucf hyglgmd` nhyjv`d |dr

mhu gmefsfe uh lyh| dvuhjdugbd``w- Dr d yfrv`u, ef ndbuh yfp`dbfjfmu ydufr cgruhyg*

bd``w ufmefe uh efb`gmf lydevd``w dr |dlfr yhrf, vmug` ucf mfsu ugjf ucdu `d|jdafyr

fmdbufe dm de chb ifmfngu gmbyfdrf- Ucgr pduufym bdm if rffm iw fsdjgmgml nglvyf 2, d

b`hrf*vp hn ucf 4766>6 pfyghe udafm nyhj ucf pyf~ghvr lydpc hn cgruhygbd` yfp`dbf*

jfmu ydufr #nglvyf 9'- Gu yf~fd`r grh`dufe rpgafr gm ifmfngu f~f`r #gmufyjguufmu flgr*

`dufe gmbyfdrfr', fdbc nh``h|fe iw d lydevd` efb`gmf #vmug` ucf mfsu ifmfngu gmbyfdrf'-\guc ugjf ucfyf bdjf d igpdyugrdm efrgyf uh gmefs Rhbgd` Rfbvyguw ifmfngur uh lyh|

dvuhjdugbd``w dme pyfegbudi`w, yducfy ucdm if rvikfbu uh ucf yfbvyyfmu |cgjr hn

igdmmvd` ph`gugbr- Rw` Rbcgfify cdr mhufe ucdu ihuc fmer hn ucf ph`gugbd` rpfbuyvj

cde yfdrhm uh rvpphyu rvbc d bcdmlf;

Bhmrfy~dug~fr rvrpfbufe ucdu Bhmlyfrr |dr gmb`gmfe uh gmbyfdrf

ifmfngur f~fyw hucfy wfdy bhgmbgegml |guc f fbughmr dme |dmufe uh

`gjgu ifmfngu lyh|uc uh mh jhyf ucdm gmn`dughm- @gifyd`r |fyf |hy*

ygfe ucdu |cfm Bhmlyfrr |dr egruydbufe iw hucfy pyfrrgml jduufyr

gu hnufm ndg`fe uh affp hy pyhufbu ifmfngur nyhj gmn`dughm rh ucfw rd|

dvuhjdugb gmefsdughm dr dm fspdmrghm hn rwrufj pyhufbughmr-42

49- 9?49 Dmmvd` Yfphyu, udi`f G^-I

7/30/2019 Understanding Social Security Benefit Adequacy: Myths and Realities of Social Security Replacement Rates

11/35

JFYBDUVR BFMUFY DU LFHYLF JD RHM VMG^FYRGUW

44

Ucf bvyyfmu jfuche hn gmefsgml ucf ifmfngu nhyjv`d bdjf dihvu dr d yfrv`u hn d

rfyghvr flgr`dug~f jgrrufp- Gm 47

7/30/2019 Understanding Social Security Benefit Adequacy: Myths and Realities of Social Security Replacement Rates

12/35

JFYBDUVR BFMUFY DU LFHYLF JD RHM VMG^FYRGUW

49

hn ucf ydufr gm ucf ifmfngu rbcfev`f ucvr yfpyfrfmur d rfbhme dekvrujfmu nhy gmn`dughm- Gm rvj, gmn`d*

ughm ydgrfr |dlfr, dme dr d yfrv`u, |hyafyr jh~f cglcfy vp gm ucf ifmfngu rbcfev`f1 ivu du ucf rdjf

ugjf, ucf ifmfngu ydufr dyf dekvrufe rh ucdu fdbc rufp gm ucf rbcfev`f gr d`rh drrhbgdufe |guc d cglcfy

eh``dy ifmfngu- Bhmlyfrrghmd` Ivelfu Hnngbf,Ngmdmbgml Rhbgd` Rfbvyguw; Grrvfr nhy ucf Rchyu dme @hml

Ufyj #\drcgmluhm, EB; Bhmlyfrrghmd` Ivelfu Hnngbf, 473-

4>- Lfhnnyfw Ah``jdmm,Rhbgd` Rfbvyguw; Rvjjdyw hn Jdkhy Bcdmlfr gm ucf Bdrf Ifmfngur _yhlydj #BYR

@flgr`dug~f Cgruhygfr 9, Jdw 43, 9???', cuup;((|||-rrd-lh~(cgruhyw(yfphyur(byr`flcgru9-cuj -

4

7/30/2019 Understanding Social Security Benefit Adequacy: Myths and Realities of Social Security Replacement Rates

13/35

JFYBDUVR BFMUFY DU LFHYLF JD RHM VMG^FYRGUW

42

Ucf bhmbfym fspyfrrfe iw ucf bhmrv`udmu pdmf` fmbdprv`dufr d bfmuyd` eg`fjjd

drrhbgdufe |guc ucf ph`gbw lhd` hn jdgmudgmgml bhmrudmu ifmfngu yfp`dbfjfmu ydufr

gm d pyhlydj ngmdmbfe gm ucf jdmmfy hn Rhbgd` Rfbvyguw; ucdu ehgml rh gmn`gbur cglcfy

uds ydufr hm dufy lfmfydughmr-43

Ucgr dme hucfy bhmrftvfmbfr hn ucf bvyyfmu ifmfngu*gmefsgml jfuche |g`` if fsp`hyfe gm ucf pdlfr ucdu nh``h|-

RHBGD@ RFBVYGUW YF_@DBFJFMU YDUFR DYF YGRGML YF@DUG^F UH\HYAFY RUDMEDYER HN @G^GML

D |gefrpyfde jgrbhmbfpughm bhmbfymgml Rhbgd` Rfbvyguw ifmfngur gr ucdu jdgm*

udgmgml bhmrudmu yfp`dbfjfmu ydufr fmrvyfr bhjpdydi`f uyfdujfmu hn rvbbfrrg~f

lfmfydughmr hn Rhbgd` Rfbvyguw ifmfngbgdygfr- Gu ehfr mhu- Gu fmrvyfr ucdu ifmfngur dyf

bhjpdydi`f gm bfyudgm yfrpfbur, ivu gu d`rh jfdmr cglcfy uds ydufr hm #dme d``h|r

|hyrfmfe jhmfwr |hyuc uyfdujfmu hn' whvmlfy lfmfydughmr dr rhbgfuw dlfr-47

Yfbhlmgughm hn ucfrf de~fyrf fnnfbur gr yhvugmf`w hjguufe nyhj fsp`dmdughmr hnucf ydughmd`f nhy ch`egml yfp`dbfjfmu ydufr bhmrudmu-9? Ucfrf fsp`dmdughmr hnufm

mfl`fbu uh jfmughm ucdu, vmefy fsgrugml ngmdmbgml jfucher, whvmlfy lfmfydughmr

jvru rchv`efy bhmrgefydi`w cglcfy uds ivyefmr uh yfbfg~f ucf rdjf yfp`dbfjfmu

ydufr- Uchvlclyhrr ifmfngur jglcu if cf`e bhmrudmu iw hmf jfdrvyf, mfu ifmfngur

43- Gm ucfhyw ucgr mffe mhu if uyvf gm d |ch``w pyf*nvmefe rwrufj, dr fdy`gfy mhufe- Ucf yf`dughmrcgp

ifu|ffm pdw*dr*whv*lh ngmdmbgml, phpv`dughm dlgml, dme pyhlydj ngmdmbfr |g`` if nvyucfy fsp`hyfe

gm ucf nh``h|gml rfbughm-

47- Jhmfwr |hyuc gr d ufyj hn dyu fjp`hwfe gm Rhbgd` Rfbvyguw dmd`wrfr1 gu yfnfyr uh ucf ydugh hn ucf

pyfrfmu ~d`vfr hn ifmfngur yfbfg~fe uh uds bhmuygivughmr jdef- \hyrfmfe jhmfwr |hyuc uyfdu*

jfmu jfdmr ucdu ucgr ydugh efb`gmfr; ucdu whvmlfy lfmfydughmr dyf yfuvymfe d rjd``fy nydbughm hn uds

bhmuygivughmr dr f~fmuvd` ifmfngur-

9?- Nhy fsdjp`f, d pvi`gbdughm hn ucf Djfygbdm Dbdefjw hn Dbuvdygfr rudufr ucdu, Gmefsgml uh |dlfr

ihuc |hyafyr fdymgmlr dme ucf ifme phgmur cf`pr fmrvyf ucdu gmgugd` Rhbgd` Rfbvyguw ifmfngur yfjdgm

bhjpdydi`f h~fy ugjf nhy |hyafyr |guc rgjg`dy fdymgmlr cgruhygfr yf`dug~f uh pyf~dg`gml |dlf f~*

f`r- Rff Djfygbdm Dbdefjw hn Dbuvdygfr,Grrvf Iygfn, Rhbgd` Rfbvyguw Yfnhyj; _hrrgi`f Bcdmlfr

gm ucf Ifmfngu Nhyjv`dr dme Udsdughm, Kvmf 9?4?- D pvi`gbdughm hn ucf Mdughmd` Bhjjguuff uh

_yfrfy~f Rhbgd` Rfbvyguw dme Jfegbdyf rgjg`dy`w rudufr ucdu Ucf bvyyfmu ifmfngu nhyjv`d gr gmufmefe

uh fmrvyf ucdu ucf yfp`dbfjfmu yduf ucf pfybfmudlf hn |hyafyr pyf*yfugyfjfmu fdymgmlr ucdu dyf

yfp`dbfe iw Rhbgd` Rfbvyguw yfjdgmr bhmrudmu |cfucfy rhjfhmf yfugyfr uhedw hy gm ucf nvuvyf-

Rff Mdughmd` Bhjjguuff uh _yfrfy~f Rhbgd` Rfbvyguw dme Jfegbdyf,Rhbgd` Rfbvyguw; \dlf*Gmefsgml

~fyrvr _ygbf*Gmefsgml hn Ifmfngur, Kdmvdyw, 9??6, cuup;((lydwpdmucfyrrn-glb-hyl(pygbfgmefsgml-cuj-

Uchvlc ucfrf pdrrdlfr dyf ufbcmgbd``w pyfbgrf gm mhugml hm`w ucdu ucf ifmfngur dyf bhjpdydi`f gm

d rfmrf, ucfw eh mhu yfnfyfmbf ucf dbbhjpdmwgml ygrgml uds ivyefmr dme bhv`e fdrg`w if jgryfde

dr gjp`wgml ucdu |dlf*gmefsdughm pyhevbfr bhjpdydi`f h~fyd`` uyfdujfmu hn egnnfyfmu lfmfyd*

ughmr- Lhgml nvyucfy gr d pvi`gbdughm hn ucf DDY_, |cgbc rudufr, Ucf nh``h|gml pygmbgp`fr |g`` lvgef

DDY_r dppyhdbc uh gjpyh~gml ucf deftvdbw dme ftvguw hn Rhbgd` Rfbvyguw ifmfngur Ucf Rhbgd`

Rfbvyguw pyhlydj rchv`e ruyg~f uh fmrvyf ucdu rgjg`dy gnfugjf fdymgmlr lfmfyduf rgjg`dy ifmfngu

ruyfdjr- Rff DDY_, Yfugyfjfmu Gmbhjf, bcdp- 5 gmDDY_ _h`gbw Ihha 9?449?49, cuup;((|||-

ddyp-hyl(bhmufmu(edj(ddyp(dihvuXddyp(ddypXph`gbgfr(9?44X?5(pen(Bcdpufy5-pen- Dldgm, fnu hvu hn

ucgr rudufjfmu gr ucdu vmefy bvyyfmu ngmdmbgml jfucher ucfrf yfrpfbug~f gnfugjf fdymgmlr dme ifm*

fngu ruyfdjr bdm if bhmruyvfe dr rgjg`dy gm rhjf yfrpfbur, ivu ucf rdjf bdmmhu if rdge hn ucf uds

ivyefmr ndbgml egnnfyfmu lfmfydughmr-

7/30/2019 Understanding Social Security Benefit Adequacy: Myths and Realities of Social Security Replacement Rates

14/35

7/30/2019 Understanding Social Security Benefit Adequacy: Myths and Realities of Social Security Replacement Rates

15/35

JFYBDUVR BFMUFY DU LFHYLF JD RHM VMG^FYRGUW

46

phpv`dughm dlgml, ucfm ucf bhru yduf hm fdbc |hyafy |g`` ygrf-

Gm rvj, dr h`efy Djfygbdmr ifbhjf dm gmbyfdrgml rcdyf hn ucf uhud` phpv`dughm,

|dlf*gmefsdughm hn ifmfngur ehfr mhu yfrv`u gm bhjpdydi`f uyfdujfmu hn egnnfyfmu

lfmfydughmr hn |hyafyr- Gu gmrufde jfdmr ucdu dufy lfmfydughmr, |hyagml |cfm ucfydugh hn |hyafyr uh ifmfngbgdygfr gr rjd``fy, |g`` ndbf cglcfy uds ivyefmr uh fdym ucf

rdjf yfp`dbfjfmu ydufr- Dme uchvlc ucfgy ifmfngur jdw ch`e bhmrudmu dr d pfybfmu*

dlf hn ucfgy pyf*yfugyfjfmu fdymgmlr, ucfrf ifmfngur |g`` mf~fyucf`frr efb`gmfdr d pfy*

bfmudlf hn ucfgy pyf*yfugyfjfmu uds bhmuygivughmr- Ucgr d`rh jfdmr ucdu ucfgy ifmfngur

|g`` ygrf dr d pfybfmudlf hn ucfgy pyf*yfugyfjfmu dnufy*uds gmbhjf-

Uchvlc ucf bvyyfmu |dlf*gmefsgml jfuche ehfr mhu byfduf mfu ifmfngu ftvguw

ifu|ffm egnnfyfmu lfmfydughmr, mfgucfy gr gu ucf bdvrf hn ucf rwrufjr fsgrugml gmufy*

lfmfydughmd` gmftvgugfr- Efb`gmgml jhmfwr |hyuc uyfdujfmu vmefy Rhbgd` Rfbvyguw

gr gmrufde d bhmrftvfmbf hn ucf gmufydbughmr ifu|ffm pdw*dr*whv*lh ngmdmbgml dme

phpv`dughm dlgml- Gm rvbc d rwrufj, whvmlfy lfmfydughmr jvru pdw cglcfy uds ydufr

gn ifmfngu yfp`dbfjfmu ydufr dyf uh if cf`e bhmrudmu- Gn uds ydufr dyf d`ufymdug~f`w cf`ebhmrudmu, ucfm ifmfngur nhy whvmlfy lfmfydughmr jvru ifbhjf d rjd``fy pfybfmudlf

hn ucfgy pyf*yfugyfjfmu |dlfr-99 Vmefy fgucfy rbfmdygh, yfuvymr hm Rhbgd` Rfbvyguw

bhmuygivughmr |hv`e gmf~gudi`w efb`gmf h~fy ugjf-

Ucfyf gr mhucgml gmf~gudi`f, ch|f~fy, dihvu ucgr |hyrfmgml uyfdujfmu ifgml

jdmgnfrufe dr cglcfy uds ivyefmr ifbdvrf hn |dlf*gmefsgml hn ifmfngur- Mhy gr gu

b`fdy ucdu d|jdafyr amh|gml`w gmufmefe uh lfmfyduf ifmfngu yfp`dbfjfmu ydufr ucdu

pfyrgrufmu`w ygrf dr d pfybfmudlf hn pyf*yfugyfjfmu dnufy*uds gmbhjf, dr ucf bvyyfmu

gmefsgml jfuche bdvrfr uh cdppfm-

_yfrfmufe gm udi`f 4 dyf pyhkfbufe ifmfngu yfp`dbfjfmu ydufr dme dppyhsgjduf

bdyffy bhru ydufr nhy jfegvj*|dlf |hyafyr uvymgml >6 gm 4736, 9?9?, dme 9?66

yfrpfbug~f`w, fdbc hn |chj b`dgjr ifmfngur du ucf MYD-92

Ucf ph`gbw drrvjpughmvmefy`wgml ucgr udi`f gr ucdu ucf bvyyfmu |dlf*gmefsfe ifmfngu nhyjv`d gr fnu gm p`dbf

dme ucdu udsfr cd~f iffm ydgrfe dr mfbfrrdyw uh nvme nv`` rbcfev`fe ifmfngur-

99- F~gefmbf hn ucgr gr tvgba`w nhvme iw fsdjgmgml Rhbgd` Rfbvyguwr efb`gmgml jhmfwr |hyuc ydughr

nhy whvmlfy lfmfydughmr gm ucf mhufr hn ucf Rhbgd` Rfbvyguw Dejgmgruydughm Dbuvdywr Hnngbf, du

cuup;((|||-rrd-lh~(HDBU(MHUFR(ydm

7/30/2019 Understanding Social Security Benefit Adequacy: Myths and Realities of Social Security Replacement Rates

16/35

JFYBDUVR BFMUFY DU LFHYLF JD RHM VMG^FYRGUW

4>

UDI@F 4- BVYYFMU IFM FNGU DME BHRU RBCFEV@FR, UHUD@ RHBGD@ RFBVYGUW

Wfdy \hyafyUvymr >6

Ifmfngu Yfp`dbfjfmu Yduf dr& hn _yf*Yfugyfjfmu

Fdymgmlr95

Dppyhsgjduf BdyffyBhru Ivyefm96

Ifmfngu Yfp`dbfjfmu Yduf dr& hn Dnufy*Rhbgd`*Rfbvyguw*Uds

_yf*Yfugyfjfmu Fdymgmlr9>

4736 54-6& 6-7& 55-4&

9?9? 5?-?& 44-3& 56-5&

9?66 54-4& 4>-9& 57-?&

Dr rffm dih~f, uchvlc fdbc |hyafy gr rbcfev`fe uh yfbfg~f d ifmfngu du ucf MYD

ucdu gr ifu|ffm 5? pfybfmu dme 59 pfybfmu hn cgr pyf*yfugyfjfmu #|dlf*gmefsfe'

fdymgmlr, fdbc |hv`e cd~f ndbfe d rudya`w egnnfyfmu bhru yduf uh yfbfg~f uchrf ifm*

fngur-9< Ucf |hyafy yfugygml gm 9?66 ndbfr d gnfugjf bhru yduf h~fy 4> pfybfmu nhy ucf

rdjf ifmfngu yfp`dbfjfmu yduf ucdu bhru ucf yfugyff hn 4736 frr ucdm > pfybfmu hn cgr

bdyffy d~fydlf |dlfr-Ucf nglvyfr dih~f pfyudgm uh Rhbgd` Rfbvyguw dr d |ch`f, |cgbc gmb`vefr ihuc

egrdig`guw gmrvydmbf ifmfngur dme bhrur- Ucf pyfbfegml udi`f jdw gmeffe pyfrfmu

ucf jhru dppyhpygduf bhjpdygrhm, lg~fm ucdu d`` ucyff |hyafyr dyf f`glgi`f nhy

egrdig`guw ifmfngur ivu ucf dufy bhchyur |hv`e cd~f ndbfe rvirudmugd``w cglcfy uds

bhrur uh ngmdmbf ucfj- Hm ucf hucfy cdme, ucf 4736 yfugyff |hv`e hm`w cd~f iffm

f`glgi`f nhy egrdig`guw ifmfngur nhy d phyughm hn cgr bdyffy- Gu bhv`e ucvr if dylvfe

ucdu gu gr jhyf dppyhpygduf uh bhjpdyf yfrpfbug~f bhrur ndbgml fdbc pdyugbgpdmu

rh`f`w nhy ucf h`e*dlf dme rvy~g~hyr phyughm hn Rhbgd` Rfbvyguw #HDRG'- Udi`f 9

pyfrfmur ucgr bhjpdygrhm;

Rhvybf; Ihdye hn Uyvruff r Dmmvd` Yfphy u, 47>4, 47

7/30/2019 Understanding Social Security Benefit Adequacy: Myths and Realities of Social Security Replacement Rates

17/35

JFYBDUVR BFMUFY DU LFHYLF JD RHM VMG^FYRGUW

46

Ifmfngu Yfp`dbfjfmu Ydufdr & hn _yf*Yfugyfjfmu

Fdymgmlr

Dppyhsgjduf BdyffyHDRG Bhru Ivyefm93

Ifmfngu Yfp`dbfjfmu Ydufdr & hn Dnufy*HDRG*Bhru_yf*Yfugyfjfmu Fdymgmlr

4736 54-6& 6-2& 52-3&

9?9? 5?-?& 4?-4& 55-6&

9?66 54-4& 45-?& 5

7/30/2019 Understanding Social Security Benefit Adequacy: Myths and Realities of Social Security Replacement Rates

18/35

JFYBDUVR BFMUFY DU LFHYLF JD RHM VMG^FYRGUW

43

dmmvd` fdymgmlr, |guchvu gmefsgml, kvru pyghy uh yfugyfjfmu-2? Rhjf hn ucfrf jhyf

uwpgbd` bd`bv`dughmr bhjpdyf |guc dmmvd` gmbhjf fdymfe gm ucf dru rgml`f wfdy ifnhyf

yfugyfjfmu, hucfyr |guc dm d~fydlf hn ucf dru nf| #f-l-, ng~f' fdymgmlr wfdyr-24

Rhbgd` Rfbvyguwr yfphyufe yfp`dbfjfmu ydufr |hv`e if rglmgngbdmu`w cglcfy ucdmbvyyfmu`w yfphyufe gn ucfw |fyf bd`bv`dufe vrgml hucfy jhyf bhjjhm jfdrvyfr vrfe

gm ngmdmbgd` p`dmmgml- Rhbgd` Rfbvyguwr |dlf*gmefsgml hn dm gmeg~gevd`r pyghy fdym*

gmlr gr hmf yfdrhm nhy ucgr, ifbdvrf gu gmbyfdrfr ucf eh``dy ~d`vf drrglmfe uh pdru

fdymgmlr wfdyr, ucvr d`rh gmbyfdrgml ucf efmhjgmduhy #pyf*yfugyfjfmu fdymgmlr' gm

ucf yfp`dbfjfmu yduf bd`bv`dughm dme yfevbgml ucf yfphyufe yfp`dbfjfmu yduf-

Ucf duwpgbd` jdmmfy gm |cgbc Rhbgd` Rfbvyguw bd`bv`dufr yfp`dbfjfmu ydufr

jfdmr ucdu |cfm drrfrrgml dm gmeg~gevd`r `f~f` hn yfugyfjfmu pyfpdyfemfrr, gu

gr mhu vrvd``w jfdmgmlnv` uh dee Rhbgd` Rfbvyguwr yfphyufe yfp`dbfjfmu ydufr uh

uchrf efyg~gml nyhj hucfy rhvybfr- Ivu ifbdvrf Rhbgd` Rfbvyguwr duwpgbd` jfucher

dyf mhu |gef`w vmefyruhhe, ucgr gr nyftvfmu`w ehmf, bdvrgml rvirudmugd` bhmnvrghm

djhml dnnfbufe gmeg~gevd`r, ngmdmbgd` p`dmmfyr, dme f~fm fspfyu ph`gbw dmd`wrur- Nhyfsdjp`f, bhmrgefy ucf nh``h|gml tvhuf nyhj d pvi`gbdughm hn ucf Mdughmd` Dbdefjw

hn Rhbgd` Gmrvydmbf;

Fspfyur rdw ucdu yfugyffr mffe

7/30/2019 Understanding Social Security Benefit Adequacy: Myths and Realities of Social Security Replacement Rates

19/35

JFYBDUVR BFMUFY DU LFHYLF JD RHM VMG^FYRGUW

47

bhjpdygrhm uh gur |dlf*gmefsfe bdyffy d~fydlf fdymgmlr- Nhy uwpgbd` fdymfyr, Rhbgd`

Rfbvyguw pyh~gefr jvbc cglcfy yfp`dbfjfmu ydufr dr d pfybfmudlf hn dbuvd` pyf*

yfugyfjfmu fdymgmlr ucdm |hv`e if gmnfyyfe nyhj ucgr bhjpdygrhm-

D uydegughmd` lhd` dyugbv`dufe nhy Rhbgd` Rfbvyguw gr ucdu gu pyh~gef d n`hhy hn gmbhjfpyhufbughm, rvpp`fjfmugmlmhu rvpp`dmugmlucf fnnhyur hn gmeg~gevd`r uh pvu drgef

egrbyfughmdyw rd~gml uh|dye ucfgy h|m yfugyfjfmu- Ucgr gr hnufm fspyfrrfe iw yfnfy*

ygml uh Rhbgd` Rfbvyguw dr hmf fl hn d ucyff*`fllfe ruhh` hn yfugyfjfmu gmbhjf rfbv*

yguw, ucf hucfy u|h ifgml fjp`hwfy pfmrghmr dme gmeg~gevd` rd~gml- Uh pyhevbf dm

dbbvyduf pgbuvyf hn Rhbgd` Rfbvyguwr yh`f yf`dug~f uh ucfrf hucfy yfugyfjfmu gmbhjf

rhvybfr, bhjjhm jfuygbr jvru if vrfe-22

_fycdpr ucf efngmgug~f |hya g``vjgmdugml ucf rglmgngbdmbf hn Rhbgd` Rfbvyguw

yfp`dbfjfmu ydufr |dr dvuchyfe iw Dmeyf| Igllr dme L`fmm Rpygmlrufde-25 Ucfw

nhvme ucdu Rhbgd` Rfbvyguw uwpgbd``w yfphyur yfp`dbfjfmu ydufr idrfe hm |dlf*gmefs*

gml ucdu dyf vrvd``w rglmgngbdmu`w h|fy ucdm |hv`e if bd`bv`dufe ~gd hucfy bhjjhm

jfucher- Nhy fsdjp`f, Igllr dme Rpygmlrufde nhvme ucdu nhy yfugyfe ifmfngbgdygfrdlfe >5>> gm 9??6, Rhbgd` Rfbvyguw ef`g~fyr d jfegdm yfp`dbfjfmu yduf ftvd` uh

>5 pfybfmu hn ucf d~fydlf hn ucfgy ng~f fdymgmlr wfdyr pyghy uh yfugyfjfmu-26 Ucgr gr

yhvlc`w 9? pfybfmudlf phgmur cglcfy ucdm ucf yfp`dbfjfmu ydufr bd`bv`dufe iw Rhbgd`

Rfbvyguwr pvi`grcfe jfuche-

Rhbgd` Rfbvyguw yfp`dbfjfmu ydufr dr d pfybfmudlf hn ngmd` fdymgmlr dyf cglcfy

rug`` nhy h|*gmbhjf pdyugbgpdmur ifbdvrf hn ucf pyhlydjr pyhlyfrrg~f ifmfngu nhy*

jv`d- Igllr dme Rpygmlrufde nhvme ucdu ucf jfegdm yfp`dbfjfmu yduf nhy ucf rfbhme

gmeg~gevd` gmbhjf tvgmug`f #ifu|ffm ucf 9?uc dme 5?uc pfybfmug`fr hn ucf fdymgmlr

egruygivughm' |dr 39 pfybfmu- Nhy ucf `h|fru gmbhjf tvgmug`f, ucf jfegdm yfp`dbf*

jfmu yduf |dr dbuvd``w gmngmguf, yf~fd`gml ucdu ucf jfegdm gmeg~gevd` fdymfy gm ucdu

tvgmug`f ege mhu cd~f |dlfr gm ucf ng~f wfdyr pyghy uh b`dgjgml ifmfngur-Rvbc hnuw yfp`dbfjfmu ydufr bhv`e if ~gf|fe nyhj u|h pfyrpfbug~fr- Hm ucf hmf

cdme ucfw rch| ucdu pyf*yfugyfjfmu fdymgmlr `f~f`r dyf ~fyw `h| nhy rhjf pdyugbg*

pdmur- Hmf bhv`e dbbhyegml`w dylvf ucdu uh fmrvyf deftvduf gmbhjf pyhufbughm gm

yfugyfjfmu, yfp`dbfjfmu ydufr jvru if jvbc cglcfy ucdm bhv`e if fdymfe rh`f`w iw

ucf |dlfr hn uchrf |guc rphydegb fdymgmlr cgruhygfr dme jvru d`rh if afpu ndy cglcfy

ucdm ucf rudmedye

7/30/2019 Understanding Social Security Benefit Adequacy: Myths and Realities of Social Security Replacement Rates

20/35

JFYBDUVR BFMUFY DU LFHYLF JD RHM VMG^FYRGUW

9?

gmeg~gevd`r bdm fspfbu cglcfy rudmedyer hn `g~gml gm yfugyfjfmu ucdm ucfw fspfyg*

fmbfe evygml ucfgy |hyagml wfdyr- Gm hucfy |hyer, jdmw hn ucfrf gmeg~gevd`r jdw

cd~f iffm nhybfe uh h~fy*rd~f gm ucf rfmrf ucdu ucf ifmfngur Rhbgd` Rfbvyguw pdwr,

dme ucf uds ivyefmr yftvgyfe uh rvpphyu ucfrf ifmfngur, dyf rvbc ucdu ucfrf `h|*gmbhjf gmeg~gevd`r pyf*yfugyfjfmu rudmedyer hn g~gml jdw if gmnfyghy uh ucfgy phru*

yfugyfjfmu rudmedyer hn g~gml-2>

Igllr dme Rpygmlrufde nvyucfy nhvme ucdu jfegdm yfp`dbfjfmu ydufr |fyf uwpg*

bd``w f~fm cglcfy |cfm udagml gmuh dbbhvmu ucf rcdygml hn udsfr dme ifmfngur iw

jdyygfe bhvp`fr- Jdmw hn ucf gmeg~gevd`r gm ucf h|fru gmeg~gevd` gmbhjf tvgmug`f,

nhy fsdjp`f, |g`` eyd| Rhbgd` Rfbvyguw ifmfngur idrfe hm ucf fdymgmlr hn dmhucfy

jfjify hn ucf chvrfch`e- Udagml ucgr gmuh dbbhvmu gmbyfdrfe jfegdm yfp`dbfjfmu

ydufr uh >7 pfybfmu hn ucf d~fydlf hn ucf ngmd` ng~f fdymgmlr wfdyr pyghy uh yfugyfjfmu-

Jfegdm yfp`dbfjfmu ydufr nhy ucf ngyru dme rfbhme tvgmug`fr |fyf 42< pfybfmu dme

- Mhuf ucdu ucgr ngmegml gr mhu rh`f`w dm dyugndbu hn ucfrf gmeg~gevd`r cd~gml `h| fdymgmlr wfdyr kvru

pyghy uh b`dgjgml ifmfngur- Yfp`dbfjfmu ydufr yf`dug~f uh bdyffy B_G*gmefsfe fdymgmlr |fyf nhvme iw

Igllr dme Rpygmlrufde uh if 9>3 pfybfmu dme

7/30/2019 Understanding Social Security Benefit Adequacy: Myths and Realities of Social Security Replacement Rates

21/35

JFYBDUVR BFMUFY DU LFHYLF JD RHM VMG^FYRGUW

94

f~fm |guchvu hucfy yfugyfjfmu gmbhjf rhvybfr, yf`dug~f uh pyf*yfugyfjfmu rudm*

edyer hn `g~gml- Vmefy ucf Igllr*Rpygmlrufde pyhkfbughmr, Rhbgd` Rfbvyguw bhv`e

bhmugmvf uh jffu ucgr djigughvr rudmedye f~fm gn ifmfngur nhy `h|*gmbhjf pdy*

ugbgpdmur |fyf yfevbfe rhjf|cdu nyhj bvyyfmu rbcfev`fr #d ph`gbw ucdu G dj mhurvllfrugml ivu mhugml nhy pvyphrfr hn g``vruydughm'-

Ucf edud pyfrfmufe cfyf rvllfru ucdu gn Rhbgd` Rfbvyguw gr uh rvpp`fjfmu yducfy

ucdm uh egrp`dbf hucfy nhyjr hn yfugyfjfmu rd~gmlgn gu gr gmufmefe uh if ivu hmf `fl

hn d ucyff*`fllfe ruhh`yfevbughmr gm pyhlydj yfp`dbfjfmu ydufr |hv`e `gaf`w if

mfbfrrdyw- Dm fsp`hydughm hn phrrgi`f d`ufymdug~fr ucdu |hv`e jhyf b`hrf`w d`glm Rhbgd`

Rfbvyguw |guc ucgr ucfhyfugbd` bhmbfpughm gr pyfrfmufe gm ucf ngmd` rfbughm hn ucgr pdpfy-

Ifwhme Rhbgd` Rfbvyguw ph`gbw lhd`r, ucf Igllr*Rpygmlrufde ngmegmlr bdyyw hucfy

ph`gbw `frrhmr dr |f``- Hmf gr ucdu jdmw `h|*gmbhjf, `gtvgeguw*bhmruydgmfe gmeg*

~gevd`r jdw if dbugml pfynfbu`w ydughmd``w gm mhu pvuugml drgef nvyucfy egrbyfughmdyw

yfugyfjfmu rd~gml- Gn, nhy fsdjp`f, Rhbgd` Rfbvyguw pyhjgrfr d pdyugbv`dy gmeg~gevd`

dm gmbhjf yfp`dbfjfmu yduf hn 7? pfybfmu, dme gn ucf gmeg~gevd` cdr pyfrrgml fbh*mhjgb mffer gm ucf jhjfmu ivu gjgufe dig`guw uh ihyyh|, ucf gmeg~gevd` jdw if nv``w

yfdrhmdi`f gm efbgegml dldgmru pvuugml drgef deegughmd` hml*ufyj rd~gmlr- Ucfyf gr

dm djp`f `gufyduvyf rvpphyugml rvbc dm drrfrrjfmu hn ucgr gmeg~gevd`r gmbfmug~fr

gm rch|gml fjpgygbd``w ucdu Rhbgd` Rfbvyguw ufmer uh efpyfrr pfyrhmd` rd~gml-27 Ucf

edud pyfrfmufe iw Igllr dme Rpygmlrufde ucvr rvllfru ucdu yfevbughmr gm ucf lyh|uc

hn nvuvyf Rhbgd` Rfbvyguw ifmfngur bhv`e phrrgi`w rugjv`duf deegughmd` mdughmd` rd~*

gml |guchvu mfbfrrdyg`w yfevbgml ifmfngur nhy `h|*gmbhjf Djfygbdmr if`h| pyf*

yfugyfjfmu g~gml rudmedyer-

Jhyf lfmfyd``w, gmbhjp`fuf vmefyrudmegml hn Rhbgd` Rfbvyguw yfp`dbfjfmu ydufr

f~fm djhml jdmw yfugyfjfmu ph`gbw fspfyurrvllfrur ucdu nfefyd` ph`gbw jdafyr

rchv`e yfruydgm ucfjrf`~fr nyhj ifgml dllyfrrg~f`w pyfrbygpug~f |guc yfrpfbu uhgmevbfjfmur nhy pfhp`f uh fmldlf gm nvyucfy yfugyfjfmu rd~gml- Gm yfbfmu wfdyr ucfyf

cdr iffm |gefrpyfde gmufyfru gm ucf mvelf pcg`hrhpcw hn Ygbcdye Ucd`fy dme Bdrr

Rvmrufgm, ucf bfmuyd` pyfjgrf hn |cgbc gr ucdu lh~fymjfmu rchv`e ruffy pfhp`f gmuh

rpfbgngb fbhmhjgb ph`gbw bchgbfr ifmfngbgd` uh ucfj, |cg`f ruhppgml rchyu hn hvuyglcu

bhjpv`rghm- Hmf hn ucf jhru bhjjhm rvllfrughmr d`hml ucfrf `gmfr gr ucdu gmeg*

~gevd` |hyafyr rchv`e if dvuhjdugbd``w fmyh``fe gm 5?4#a' p`dmr #|cg`f yfudgmgml ucf

yglcu uh hpu*hvu' dr hpphrfe uh ucf rguvdughm uhedw gm |cgbc jdmw |hyafyr dyf rug``

hm`w fmyh``fe gn ucfw udaf dm dnngyjdug~f dbughm uh eh rh- Dr Ucd`fy dylvfe gm d 9??6 gm 9?66,

fdymgml ucf gmn`dughm*dekvrufe ftvg~d`fmu hn yhvlc`w %,??? uhedw, ucf rdjf yfp`dbf*

jfmu yduf mh| pyh~gefe uh d |hyafy uvymgml >6 |guc fdymgmlr hn yhvlc`w %52,3??-

Yfjfjify, ch|f~fy, ucdu ucf Rhbgd` Rfbvyguw ifmfngu nhyjv`d gr pyhlyfrrg~f1

gu pyh~gefr cglcfy yfp`dbfjfmu ydufr uh `h|fy*gmbhjf |hyafyr- Rh, ifbdvrf ucf

nhyjv`d pyh~gefr 9?66r %,??? #gmn`dughm*dekvrufe' |hyafy ucf rdjf yfp`dbf*

jfmu yduf dr uhedwr %52,3?? |hyafy, gu |g`` d`rh pyh~gef 9?66r %52,3?? #gmn`dughm*

dekvrufe' |hyafy |guc d cglcfy yfp`dbfjfmu yduf-

Gm hucfy |hyer, ucf bvyyfmu ifmfngu nhyjv`d, ifbdvrf gu dgjr uh affp yfp`dbfjfmuydufr bhmrudmu nhy d~fydlf*|dlf |hyafyr, lfmfydufr ygrgmlyfp`dbfjfmu ydufr nhy d

bhmrudmu yfd` |dlf- Ucgr rufdew gmbyfdrf gm ifmfngur nhy d lg~fm yfd` |dlf `f~f` gr d

rglmgngbdmu bhmuygivuhy uh ygrgml rwrufj bhrur-

Ucgr bdm if tvgba`w rffm iw bhjpdygml ucf ifmfngur fspyfrrfe dr yfp`dbfjfmu ydufr

rbcfev`fe nhy d |hyafy fdymgml ucf yfd` ftvg~d`fmu hn %52,3?? gm 9?66 uh uchrf hn d

%52,3?? |hyafy yfugygml uhedw- \cfyfdr uhedwr jfegvj*|dlf yfugyff |guc dm DGJF

hn %52,3?? fspfbur d ifmfngu hn yhvlc`w %43,3?? dme dm gmbhjf yfp`dbfjfmu yduf hn

59-7 pfybfmu, ucf %52,3?? #gmn`dughm*dekvrufe' |hyafy hn 9?66 |hv`e fspfbu d ifmfngu

hn yhvlc`w %94,2?? #gm uhedwr eh``dyr' dme d yfp`dbfjfmu yduf hn 53-< pfybfmu- 5

gr vm`gaf`w uh if nyvgunv` gn gu ehfr mhu pyh~gef mflhugduhyr |guc d~fmvfr uh vpch`e*

gml ucfgy yfrpfbug~f bhyf ~d`vf kveljfmur gm ucf bhvyrf hn yfdbcgml d bhjpyhjgrf

dlyffjfmu- F~fm uchrf |ch eh mhu idrf ucfgy ph`gbw ~gf|r hm yfp`dbfjfmu ydufr

mffe uh vmefyrudme |cdu ucfw eh dme eh mhu jfdm dme, rpfbgngbd``w, |cfyf ucfyf

dyf egnnfyfmbfr ifu|ffm ch| yfp`dbfjfmu ydufr dyf hnufm vmefyruhhe iw hucfyr dme

|cdu ucfw dbuvd``w jfdrvyf-Rgjp`gnwgml bhmrgefydi`w, fnu*hn*bfmufy ph`gbw de~hbdufr hnufm fspyfrr dm dige*

gml bhmbfym dihvu ifmfngu deftvdbw dr jfdrvyfe iw yfp`dbfjfmu ydufr- Yglcu*hn*

bfmufy de~hbdufr hnufm fspyfrr dm digegml bhmbfym dihvu ucf bhmugmvfe lyh|uc hn

bhru ivyefmr ndbgml udspdwfyr- D igpdyugrdm dlyffjfmu |g`` `gaf`w mffe uh deeyfrr

ihuc hn ucfrf bhmbfymr- Ucgr gr gmcfyfmu`w egnngbv`u ifbdvrf jdgmudgmgml ifmfngu

yfp`dbfjfmu ydufr dr ucfw dyf bvyyfmu`w jfdrvyfe |hv`e yftvgyf ucdu ucf pyhlydjr

ngmdmbgml rchyund`` if deeyfrrfe fmugyf`w iw ydgrgml udsfr, dm hvubhjf vmdbbfpudi`f

uh yglcu*hn*bfmufy de~hbdufr- Dme rgjg`dy`w, d rh`vughm ucdu nhbvrfr |ch``w hy f~fm

pdyugd``w hm bhru bhmudgmjfmu |hv`e yftvgyf mflhugduhyr uh didmehm ucf lhd` hn rhjf

hm ucf fnu hn jdgmudgmgml bhmrudmu yfp`dbfjfmu ydufr, du fdru dr bvyyfmu`w jfdrvyfe-

Gu gr mf~fyucf`frr phrrgi`f uh yfbhlmg{f dme chmhy ucf nhbvr hm yfp`dbfjfmu ydufrhn fnu*hn*bfmufy de~hbdufr |cg`f deeyfrrgml ucf bhru*bhmudgmjfmu bhmbfymr hn yglcu*

hn*bfmufy de~hbdufr- Ucf ngyru mfbfrrdyw rufp gr uh vmefyrudme ucf rchyubhjgmlr dme

tvgyar hn fsgrugml yfp`dbfjfmu yduf jfdrvyfr dr fsp`dgmfe gm ucgr pdpfy- Ucf rfb*

hme rufp gr uh fsp`hyf phrrgi`f yfnhyjr uh deeyfrr ucfrf tvgyar- \f cd~f rffm, nhy

fsdjp`f, ucdu f~fm mhm*uyg~gd` eh|m|dye dekvrujfmur gm ucf lyh|uc hn rbcfev`fe

NGLVYF 6- RHBGD@ RFBVYGUWR IFMFNGU NHYJV@D BDVRFR YF_@DBFJFMU YDUFR UHGMBYFDRF NHY D LG^FM YFD@ @F ^F@ HN \DLFR #RBCFEV@F E YF_@DBFJFMU Y DUFR,\HYAFYR YFUGYGML DU MYD'

Rhvybf; Dvuchy r Bd`b v`dug hmr Idrf e hm Ihd ye hn Uyvruf fr Dmmvd ` Yfphy u, 9?49

Rbcfev`feYfp`dbfjfmuYduf

\hyafyr |guc Yfd` \dlf : %52,

7/30/2019 Understanding Social Security Benefit Adequacy: Myths and Realities of Social Security Replacement Rates

27/35

7/30/2019 Understanding Social Security Benefit Adequacy: Myths and Realities of Social Security Replacement Rates

28/35

JFYBDUVR BFMUFY DU LFHYLF JD RHM VMG^FYRGUW

93

gjp`gbdughmr nhy ifcd~ghy dme nhy yfugyfjfmu rfbvyguw gm h`e dlf- Gn nhy fsdjp`f ucf

fdy`w f`glgig`guw dlf #FFD' dme MYD |fyf lydevd``w ydgrfe nyhj >9(>< vmefy bvyyfmu

rbcfev`fr uh >5(>7 yfrpfbug~f`w, ucf ifcd~ghyd` yfrv`ur |hv`e if egnnfyfmu ucdm gn ucf

rdjf djhvmu hn rd~gmlr |fyf dbcgf~fe rh`f`w iw bcdmlgml Rhbgd` Rfbvyguwr ifmfngunhyjv`dr- Gn ucf dlfr |fyf ydgrfe, rhjf hn ucf rd~gmlr |hv`e dygrf nyhj gmeg~gevd`r

mh `hmlfy bh``fbugml ifmfngur du dlfr >9 dme >2- Gn gmrufde ucf bcdmlf |fyf jdef

rh`f`w hm ucf ifmfngu rgef, jdmw hn ucfrf rdjf gmeg~gevd`r |hv`e rug`` iflgm bh``fbugml

ifmfngur du dlf >9, ucf rwrufjgb rd~gmlr dbbyvgml nyhj ucfgy yfbfg~gml `h|fy dmmvd`

ifmfngur ucyhvlchvu ucfgy yfugyfjfmu-

F~fm gn ucf uhud` rwrufjgb rd~gmlr |fyf ucf rdjf gm ucf u|h bdrfr, ucf dppyhdbc

hn ydgrgml ucf yfugyfjfmu dlf |hv`e `gaf`w `fde uh `frr ph~fyuw djhml h`efy rfmghyr

ifbdvrf gmeg~gevd`r |hv`e cd~f `fmlucfmfe ucfgy |hyagml bdyffyr, ef`dwfe ucfgy

yfugyfjfmur, dme yfbfg~fe cglcfy dmmvd` ifmfngur- Bchhrgml d yfugyfjfmu*dlf

gmbyfdrf h~fy d nhyjv`dgb ifmfngu bvu ucvr yfpyfrfmur d ef`gifyduf bchgbf iw d|jda*

fyr uh gmevbf gmeg~gevd`r uh ef`dw ucfgy dlfr hn ngyru ifmfngu b`dgjr yducfy ucdm rgjp`wuh yfevbf yfugyffr dmmvd` ifmfngu f~f`r dme ucfgy yfugyfjfmu gmbhjf rfbvyguw-

Gu gr bfyudgm`w d |hyuc|cg`f phgmu hn gmnhyjdughm nhy ph`gbw jdafyr uh amh| ucf

pyhkfbufe ifmfngur hn gmeg~gevd`r |ch b`dgj fdy`w dme ucvr yfbfg~f `h|fy dmmvd`

ifmfngur iw bchgbf- @d|jdafyr |hv`e eh |f`` uh vmefyrudme ucf ifmfngur gmeg~gevd r

yfbfg~f ihuc du ucf ruduvuhyw FFD dme ucf MYD, |cduf~fy ucfw dyf bchrfm uh if- Ucgr

gr tvguf egnnfyfmu, ch|f~fy, nyhj jdagml ucf fsb`vrg~f rudmedye nhy ifmfngu deftvdbw

uchrf pdge du d ngsfe dlf rvbc dr >6, |cgbc jdw cd~f mh pdyugbv`dy yf`f~dmbf uh fgucfy

ucf bchrfm FFD hy ucf MYD-6?

Gm rvj, ucf jfuche hn dmd`wrgr rchv`e mhu pyfefufyjgmf ucf hvubhjf hn ucf ph`*

gbw egrbvrrghm- Uh jfdrvyf ifmfngur du d ngsfe dlf yfldye`frr hn |cfyf `d|jdafyr

bhmb`vef ucf MYD rchv`e if rfu gr uh dehpu d jfuygb |guc ucf phufmugd` uh bhmnvrfdme uh hirbvyf afw ph`gbw bhmrgefydughmr- Mh jduufy |cfucfy ucf ph`gbw lhd` gr uh

fmdi`f d udylfu f~f` hn gmbhjf rfbvyguw du d ngsfe hy d ygrgml dlf, gu gr dppyhpygduf nhy

ucf MYD uh if rfu pvyrvdmu uh ucdu ph`gbw lhd` dme ucvr nhy yfp`dbfjfmu ydufr uh if

efngmfe gm yfnfyfmbf uh ucdu MYD-

Hmbf d|jdafyr uvym ucfgy duufmughm uh f~d`vdugml ifmfngu deftvdbw du ucf MYD,

57- Rff nhy fsdjp`f F{yd A`fgm, Ehmu Bvu Rhbgd` Rfbvyguw, bhue, \drcgmluhm _hru i`hl, Rfpufjify

7/30/2019 Understanding Social Security Benefit Adequacy: Myths and Realities of Social Security Replacement Rates

29/35

JFYBDUVR BFMUFY DU LFHYLF JD RHM VMG^FYRGUW

97

ucf nh``h|gml yfnhyjr uh deeyfrr rhjf tvgyar hn bvyyfmu ifmfngu rbcfev`fr jdw

if |hyuc bhmrgefydughm- Ucf bchgbfr ucdu nh``h| dyf mhu jfdmu uh if fmdbufe gm

bhjigmdughm, dr ucfw |hv`e h~fy`dp hmf dmhucfy uh d lyfdu eflyff- Fdbc |hv`e

yfevbf ucf lyh|uc hn rwrufj bhrur iw d egnnfyfmu djhvmu, dme fdbc |hv`e yfpyf*rfmu d egnnfyfmu pcg`hrhpcgbd` dppyhdbc uh rfuugml ifmfngu deftvdbw lhd`r gm ufyjr

hn yfp`dbfjfmu ydufr-

Yfnhyjr uh pyf~fmu ucf ydugh hn pyf*yfugyfjfmu gmbhjf uh phru*yfugyfjfmu ifmfngur

nyhj nvyucfy efb`gmgml; Ucf dnhyfjfmughmfe bhmbfpuvd` lhd` hn bvyyfmu ifmfngu nhy*

jv`drg-f-, jdgmudgmgml bhmrudmu yfp`dbfjfmu ydufrgr ivu hmf hn jdmw ucdu bhv`e

if dehpufe- Ucf fsgrugml nhyjv`d pvyrvfr d bfyudgm ifmfngu lyh|uc lhd` |guchvu

bhyyfrphmegml duufmughm uh `gjgugml ucf lyh|uc hn uds ivyefmr- Dm ftvd``w ~d`ge

d`ufymdug~f ~d`vf kveljfmu |hv`e if uh dgj uh pyfrfy~f uds ftvguw nhy `dufy lfmfyd*

ughmr, fgucfy iw d~hgegml nvuvyf uds gmbyfdrfr hy, jhyf djigughvr`w, iw gjgugml dufy

bhchyur gnfugjf bhru ivyefmr uh if bhjpdydi`f uh uchrf hn pyf~ghvr lfmfydughmr-

Uh pvyrvf fgucfy uds*ftvguw ph`gbw, rvirudmugd` yfruydgmur hm ucf lyh|uc hn ifm*fngur |hv`e if mfbfrrdyw- Ucf gmn`dughm*dekvrufe ~d`vf hn gmeg~gevd` ifmfngur, |cgbc

ygrfr ydpge`w vmefy bvyyfmu nhyjv`dr #rff nglvyf 5', bhv`e bhmugmvf uh ygrf rhjf|cdu

f~fm |guchvu ydgrgml nvuvyf udsfr, pyh~gefe ucdu ifmfngur dyf d``h|fe uh efb`gmf dr

jfdrvyfe iw yfp`dbfjfmu ydufr- Ucf jhyf djigughvr ngrbd` rudmedye hn ch`egml uhud`

`gnfugjf bhru ydufr uh cgruhygbd` mhyjr bhv`e mh| hm`w if jfu, ch|f~fy, iw yfevbgml

ucf yfd` ~d`vf hn ifmfngur, gmb`vegml nhy jdmw d`yfdew yfbfg~gml ucfj-64

\cfucfy ph`gbw jdafyr rchv`e ruyg~f uh jdgmudgm ftvguw nhy pdyugbgpdmur pygjdy*

g`w dr udspdwfyr hy dr ifmfngbgdygfr gr dm gjphyudmu ~d`vf kveljfmu- Ivu f~fm gn dehpu*

gml ucf pfyrpfbug~f hn nhbvrgml rh`f`w hm ifmfngbgdygfr, ucf fsgrugml |dlf*gmefsgml

nhyjv`d jdw if bhmrgefyfe uh h~fyrchhu gur dppyhpygduf udylfu- D eh|m|dye dekvru*

jfmu uh rbcfev`fe ifmfngu lyh|uc |hv`e if mfbfrrdyw, nhy fsdjp`f, uh d~hge nvyucfygmbyfdrfr gm yfp`dbfjfmu ydufr yf`dug~f uh pyf*yfugyfjfmu rudmedyer hn g~gml-

Jdgmudgmgml ifmfngu yfp`dbfjfmu ydufr dr d bhmrudmu pfybfmudlf hn |hyafyr

pyf*yfugyfjfmu g~gml rudmedyer #dr jfdrvyfe iw dnufy*Rhbgd`*Rfbvyguw*uds gmbhjf'

|hv`e lfmfyduf pfy*bdpgud ifmfngur ucdu lyh| rvirudmugd``w jhyf ydpge`w ucdm pygbf

gmn`dughm, ivu rhjf|cdu jhyf r`h|`w ucdm vmefy bvyyfmu nhyjv`dr dme jhyf r`h|`w

ucdmlyhrr pyf*yfugyfjfmu fdymgmlr- Rvbc d eh|m|dye dekvrujfmu uh ifmfngu lyh|uc

yfpyfrfmur ucf jgmgjvj mfbfrrdyw uh fmrvyf ucdu ucf yf`dughmrcgp ifu|ffm phru*

yfugyfjfmu ifmfngur uh pyf*yfugyfjfmu g~gml rudmedyer yfjdgmr rudi`f gm ucf nvuvyf-

Drrvjgml nhy g``vruydug~f pvyphrfr ucdu ucfrf dekvrujfmur dyf dpp`gfe lydevd` w

dme pyhphyughmd``w uh pdyugbgpdmur mh| 66 dme vmefy, d yfevbughm gm ucf lyh|uc hn

64- Dr d phgmu hn yfnfyfmbf, bhmrgefy ucdu ucf bvyyfmu dmmvd` Rhbgd` Rfbvyguw bhru yduf hn 42-32& gm 9?49

|g`` ygrf gm ucf nvuvyf dme gr d`yfdew rvirudmugd``w cglcfy ucdm ucf gnfugjf bhru ydufr ndbfe iw uchrf

mh| fmufygml ucf yfugyfjfmu yh``r- Rff Dmmvd` Gmbhjf Ydufr, Bhru Ydufr, Dme Id`dmbfr #cuup;((

|||-rrd-lh~(HDBU(UY(9?49(`y5i4-cuj`'-

7/30/2019 Understanding Social Security Benefit Adequacy: Myths and Realities of Social Security Replacement Rates

30/35

JFYBDUVR BFMUFY DU LFHYLF JD RHM VMG^FYRGUW

2?

rbcfev`fe ifmfngur hn yhvlc`w ?-96 pfybfmudlf phgmur pfy wfdy |hv`e ch`e yfp`dbf*

jfmu ydufr yhvlc`w bhmrudmu dr d pfybfmudlf hn pyf*yfugyfjfmu dnufy*uds gmbhjf, dr

rch|m gm udi`f 2-69

UDI@F 2- ?-96 _HGMU DMMVD@ YFEVB UGHM GM RBCFEV@F E IFMFNGU LYH\ UC, UHUD@RHBGD@ RFBVYGUW

Wfdy \hyafy Uvymr>6

Ifmfngu Yfp`dbfjfmuYduf du MYD dr & hn _yf*Yfugyfjfmu Fdymgmlr

Dppyhsgjduf Bdyffy Rhb-Rfb- Bhru Ivyefm

Ifmfngu Yfp`dbfjfmuYduf dr & hn Dnufy*Rhbgd`*Rfbvyguw*Uds_yf*Yfugyfjfmu Fdymgmlr

4736 54-6& 6-7& 55-4&

9?9? 5?-?& 44-3& 56-5&

9?66 2

7/30/2019 Understanding Social Security Benefit Adequacy: Myths and Realities of Social Security Replacement Rates

31/35

JFYBDUVR BFMUFY DU LFHYLF JD RHM VMG^FYRGUW

24

pyhevbf yfp`dbfjfmu ydufr fsbffegml

7/30/2019 Understanding Social Security Benefit Adequacy: Myths and Realities of Social Security Replacement Rates

32/35

JFYBDUVR BFMUFY DU LFHYLF JD RHM VMG^FYRGUW

29

UDI@F 5- YF_@DBFJFMU YDUFR NHY MF\ YFUGY FFR GM 9?5?, D@UFYMDUG^F RBFMDYGHR

Gmbhjftvgmug`f

RcdyfeRhb RfbYfp`- Yduf#BvyyfmuRbcfev`fr'

Hpughm "4JfegdmYfp`- Yduf

Hpughm "4YfevbughmnyhjBvyyfmuRbcfev`f

Hpughm "4Rcdyf hn

7/30/2019 Understanding Social Security Benefit Adequacy: Myths and Realities of Social Security Replacement Rates

33/35

JFYBDUVR BFMUFY DU LFHYLF JD RHM VMG^FYRGUW

22

ugjf, ucf rdjf yfd` |dlf `f~f` pyhevbfr ucf rdjf yfd` ifmfngu `f~f` dme ucf rdjf

yfp`dbfjfmu yduf- Ucgr |hv`e fmrvyf ucdu ucf |hyafyr hn ucf nvuvyf |guc ucf rdjf

yfd` |dlfr dr uhedwr |hyafyr yfbfg~f ucf rdjf yfd` ifmfngur, ivu mh jhyf-

Ucgr bhv`e if dbbhjp`grcfe iw bcdmlgml ucf jfuche hn gmefsgml ucf ifme phgmur gmucf ifmfngu nhyjv`d rh ucdu ucfw ygrf |guc pygbf gmn`dughm yducfy ucdm |dlf gmn`dughm-6>

Ucgr |hv`e mhu if ucf ftvg~d`fmu hn pygbf gmefsgml pfy rf, ifbdvrf h~fyd`` ifmfngur

|hv`e bhmugmvf uh ygrf jhyf ydpge`w ucdm pygbf gmn`dughm dr |hyafy |dlf f~f`r ygrf-

Vmefy bvyyfmu `d|, yfd` ifmfngu lyh|uc gr eyg~fm iw u|h ndbuhyr; lyh|uc gm yfd`

|hyafy |dlfr dr |f`` dr lyh|uc gm ucf yfd` ifmfngur pdge nhy d lg~fm yfd` |dlf- Vmefy

ucgr yfnhyj, ucf rfbhme hn ucfrf rhvybfr hn bhru lyh|uc |hv`e if yfjh~fe- Nvuvyf

lyh|uc gm yfd` ifmfngu f~f`r |hv`e if eyg~fm rh`f`w iw ucf lyh|uc gm |hyafy |dlfr1

ucf yfd` ifmfngur pdge nhy d lg~fm `f~f` hn yfd` |dlfr |hv`e yfjdgm ucf rdjf dbyhrr

ugjf-6< Ucgr gr g``vruydufe gm nglvyf >-

Ucgr hpughm rchv`e f`gjgmduf du fdru cd`n hn ucf pyhkfbufe Rhbgd` Rfbvyguw rchyu*

nd``, efpfmegml vphm ch| tvgba`w gu gr pcdrfe gm-Ucgr yfnhyj |hv`e if d pcg`hrhpcgbd` efpdyuvyf nyhj bvyyfmu d| gm rhjf |dwr

ivu |hv`e jdgmudgm ph`gbw bhmugmvguw gm hucfyr- Bvyyfmu d| fjihegfr d pcg hrhpcw

gm |cgbc dr rhbgfuw lyh|r |fd`ucgfy, ucf Rhbgd` Rfbvyguw rdnfuw mfu lyh|r jhyf lfm*

fyhvr1 d nvuvyf yfugyff hn d lg~fm |dlf `f~f` ucvr yfbfg~fr cglcfy yfd` ifmfngur ucdm

uhedwr uh affp pdbf |guc ucf |fd`ucgfy rhbgfuw dyhvme cgj- Ucgr d`ufymdug~f yfnhyj

|hv`e gmrufde fjiydbf d egnnfyfmu pcg`hrhpcw hn jdgmudgmgml ucf rudmedye hn `g~gml

hn gmeg~gevd`r |guc ftvd` yfd` |dlfr, rvbc ucdu dmw gmbyfdrf gm yfd` |dlfr gr gur h|m

yf|dye1 gn uhjhyyh|r jfegvj*|dlf |hyafyr fdymgmlr cd~f ucf pvybcdrgml ph|fy

hn uhedwr cglc*gmbhjf |hyafy, cf rchv`e ucfm lfu ifmfngur bhjpdydi`f uh uhedwr

cglc*gmbhjf |hyafy yducfy ucdm if uyfdufe dr uchvlc cf gr phhyfy-63

Gm hucfy gjphyudmu |dwr, ucgr hpughm gr pcg`hrhpcgbd``w bhmugmvhvr |guc bvy*yfmu `d|- Jdmw de~hbdufr dyf bhjjguufe uh jdgmudgmgml bhmrudmu yfp`dbfjfmu

ydufr- Dr fdy`gfy mhufe, efngmgml ucgr dr jdgmudgmgml bhmrudmu yfp`dbfjfmu ydufr nhy

d~fydlf*|dlf |hyafyr ~gyuvd``w nhyiger d flgr`dug~f rh`vughm uh Rhbgd` Rfbvyguwr

6>- Ucf ifmfngu nhyjv`d bhmrgrur hn d rfu hn iydbafur dmd`hlhvr uh gmbhjf uds iydbafur1 ucfyf gr d 7? pfy*

bfmu iydbafu, d 29 pfybfmu iydbafu, dme d 46 pfybfmu iydbafu- Ucf pfybfmudlfr dyf cglcfy du ucf ihu*

uhj hn ucf |dlf rbd`f uh pyh~gef cglcfy yfuvymr uh `h|fy*gmbhjf ifmfngbgdygfr- Ucf ifme phgmur

dyf ucf ihyefyr ifu|ffm ucf iydbafur- Vmefy bvyyfmu `d| ucf ihyefy ifu|ffm ucf 7?& yflghm dme

ucf 29& yflghm, nhy fsdjp`f, gr gmefsfe uh lyh| |guc ucf D\G- Vmefy ucf yfnhyj efrbygife cfyf,

ucf ihyefy |hv`e ygrf dmmvd``w |guc ucf Bhmrvjfy _ygbf Gmefs-

6

7/30/2019 Understanding Social Security Benefit Adequacy: Myths and Realities of Social Security Replacement Rates

34/35

JFYBDUVR BFMUFY DU LFHYLF JD RHM VMG^FYRGUW

25

rchyund``, dr gu |hv`e yftvgyf gur fmugyfuw uh if yfrh`~fe iw uds gmbyfdrfr, d rh`vughm

vmdbbfpudi`f uh jhru de~hbdufr gm ucf ph`gugbd` bfmufy dme ucf yglcu- Gu d`rh pyf*

b`vefr ucf bhmrgefydughm hn ph`gbw hpughmr uh yfevbf ucf mfu gmbhjf `hrrfr hn `dufy

lfmfydughmr- Dehpugml d pfyrpfbug~f, ch|f~fy, gm |cgbc gu gr mfbfrrdyw hm`w ucdu

|f jdgmudgm bhmrudmu yfp`dbfjfmu ydufr nhy bhmrudmu |dlfr |hv`e chmhy ucf `fnur

ycfuhygbd` bhjjgujfmu uh pyfrfy~gml yfp`dbfjfmu ydufr |cg`f d``h|gml ucf yglcur

bhmbfymr dihvu ygrgml pyhlydj bhrur uh if du `fdru pdyugd``w deeyfrrfe- @d|jdafyr

hm ihuc rgefr jglcu d`rh bhmb`vef, dnufy ruvewgml ucf grrvf b`hrf`w, ucdu ucfw eh mhu

if`gf~f gu mfbfrrdyw hy efrgydi`f nhy ifmfngu nhyjv`dr uh pyhevbf yfp`dbfjfmu ydufrucdu ygrf h~fy ugjf nhy d lg~fm f~f` hn yfd` |dlfr-

D`` hn ucf hpughmr pyfrfmufe cfyf deeyfrr tvgyar dygrgml vmefy Rhbgd` Rfbvyguwr

ifmfngu nhyjv`dr ucdu jdmw |hv`e ngme bhvmufygmuvgug~f hy gmdppyhpygduf, f~fm dr

d`` hn ucfrf hpughmr jdgmudgm d ph`gbw nhbvr hm yfp`dbfjfmu ydufr- Dldgm, ucgr gr mhu

uh rvllfru ucdu yfp`dbfjfmu ydufr dyf ucf hm`w dppyhpygduf pygrj ucyhvlc |cgbc uh

~gf| Rhbgd` Rfbvyguw ph`gbw hpughmr, ivu uh mhuf |dwr gm |cgbc ucf fnnfbur hn fsgrugml

ph`gbgfr jglcu if ifuufy vmefyruhhe dme phrrgi`w jhegngfe-

BHMB@VRGHM

Nhy wfdyr, jdmw ph`gbw de~hbdufr cd~f nydjfe f~d`vdughmr hn Rhbgd` Rfbvyguwifmfngu deftvdbw gm ufyjr hn yfp`dbfjfmu ydufr- Ucfyf yfjdgmr, ch|f~fy, gmbhj*

p`fuf amh|`felf f~fm djhml jdmw fspfyur dme ph`gbw jdafyr hn ucf dmd`wugbd`

rglmgngbdmbf hn ucf yfp`dbfjfmu ydufr ucdu Rhbgd` Rfbvyguw yfphyur dr |f`` dr hn

bhvmufygmuvgug~f yfrv`ur ucdu dygrf vmefy fsgrugml ifmfngu nhyjv`dr-

Ucf bvyyfmu*`d| jfuche hn gmefsgml Rhbgd` Rfbvyguw ifmfngur |dr dehpufe gm

NGLVYF >- CH@EGML YF_@ DBFJFMU YDUFR BHMRUDMU IW IFME _HGMU YF*GMEF SGML#YF_@DBFJF MU YDUFR, \HYAFYR YFUGYGML DU MYD \GUC YF D@ \DLFR : %52,

7/30/2019 Understanding Social Security Benefit Adequacy: Myths and Realities of Social Security Replacement Rates

35/35

JFYBDUVR BFMUFY DU LFHYLF JD RHM VMG^FYRGUW

ucf 47