The answer is that no, we don’t have to pay out enormous sums of social security to rich people. Right now the benefit varies but that is not a necessary part of the scheme. Just like we set a maximum contribution now, we can set a maximum benefit.
No matter how you slice it, the problem right now is that people raking in $ are not paying enough into the system.
Or set maximum monthly payout, adjusted annually for inflation and let the actuaries figure out where the wage cap needs to sit each year to fully fund the system.
The answer is that no, we don’t have to pay out enormous sums of social security to rich people. Right now the benefit varies but that is not a necessary part of the scheme. Just like we set a maximum contribution now, we can set a maximum benefit.
No matter how you slice it, the problem right now is that people raking in $ are not paying enough into the system.
Or set maximum monthly payout, adjusted annually for inflation and let the actuaries figure out where the wage cap needs to sit each year to fully fund the system.