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    SSDI Reform: Promoting Gainful Employment while Preserving Economic Security

    Shifting benefits at the margin toward paying beneficiaries to work rather than to remain out of the work force would encourage beneficiaries with residual work capacities to return to work.

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    Social Security Falls Even Deeper into a Sinkhole

    Social Security is inexorably headed toward financial insolvency.

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    Social Security Reform: Does Privatization Still Make Sense?

    This paper discusses the financial mechanics involved in privatizing Social Security, its potential contribution toward improving Americans’ retirement security, and the problems that may emerge from such a structural change to the program.

The Bottom Line

Social Security is not sustainable without reform. Simply put, it cannot pay promised future benefits with current levels of taxation. Yet raising taxes or cutting benefits will only make a bad deal worse. However, allowing younger workers to privately invest their Social Security taxes through individual accounts will improve Social Security’s rate of return; provide better retirement benefits; treat women, minorities, and low-income workers more fairly; and give workers real ownership and control of their retirement funds.

Cato Studies

“SSDI Reform: Promoting Gainful Employment while Preserving Economic Security,”

By Jagadeesh Gokhale. Policy Analysis No. 762. October 22, 2014.

“The Rising Cost of Social Security Disability Insurance,”

By Tad DeHaven. Policy Analysis No. 733. August 6, 2013.

“Spending Beyond Our Means: How We Are Bankrupting Future Generations,”

By Jagadeesh Gokhale. White Paper . February 13, 2013.

“Still a Better Deal: Private Investment vs. Social Security,”

By Michael D. Tanner. Policy Analysis No. 692. February 13, 2012.

“Social Security, Ponzi Schemes, and the Need for Reform,”

By Michael D. Tanner. Policy Analysis No. 689. November 17, 2011.

More Cato Studies

Experts

  • spacer José Piñera
  • spacer Michael D. Tanner

Subtopics

  • Bad Ideas for Reform
  • Cato's 6.2 Percent Solution
  • International Social Security Reform
  • Non-financial Reasons for Reform
  • Personal Accounts
  • Social Security's Financial Crisis

Commentary

Medicare and Social Security Tabs Coming Due

Michael D. Tanner in Reason
Social Security, Medicare, and Medicaid alone account for 47 percent of federal spending today, a portion that will only grow larger in the future.

Social Security Isn’t Going Away — But It Is Going to Get Worse

Michael D. Tanner in Vice News
To pay all the benefits promised in the future, Social Security would have to increase the payroll tax by as much as half, or slash benefits by 23 percent.

The Fiscal and Economic Implications of Mandatory Pension Savings

Daniel J. Mitchell in Cayman Financial Review
Retirement systems based on mandatory saving are a win-win-win for workers, governments, and national economies.

Obama’s Budget: Why Won’t President Fix What Needs Fixing (Hint: Social Security, Medicare)?

Nicole Kaeding in Fox News (Online)
Obama will propose more of the same failed tax-and-spend policies he has favored for his 6 years in office.

SSDI Reform: A New Benefit Structure to Encourage Work by Individuals with Disabilities

Jagadeesh Gokhale in TownHall.com

The program is structurally unsound: its rules induce those who could work despite medical impairments to exit the labor force and apply for benefits.

The Real Reacti