The Social Security benefit formula is far more complex than those used for private sector defined benefit pensions. This has two important effects on retirement security. First, most ordinary Americans are incapable of calculating their own benefits, with the result that many people have no idea what their benefit will be until the first check arrives. Second, the benefit formula's complexity results in many households with identical lifetime earnings receiving very different benefit levels. This undermines the social insurance value of the Social Security program.
At this event, AEI resident scholar Andrew Biggs will address members of the Savings and Retirement Forum about the present system and propose reforms that could create a more transparent and effective retirement program.
Adam Paul
American Enterprise Institute
1150 Seventeenth Street, N.W.
Washington, DC 20036
Phone: 202-862-5852
Veronique Rodman
American Enterprise Institute
1150 Seventeenth Street, N.W.
Washington, DC 20036
Phone: 202-862-4870
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