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Joint Economic Committee Democrats
Social Security Charts
Chart 4.3
Last updated 7/6/06
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The President’s proposal to substitute price-indexing for wage-indexing of initial Social Security benefits would result in declining benefits in successive generations of retirees for all but low earners, compared with what is scheduled under current law.
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By the time workers born in 2006 retire in 2071, the benefit structure would flatten considerably: the highest-earning workers would have paid more than anyone else did into the system, but their benefits would be very close to those available to medium earners.
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The relationship between contributions and benefits—what many observers consider to be the cornerstone of the broad political support enjoyed by Social Security—would be nearly obliterated and would continue to erode over time.
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