3 Things I Learned About Social Security Last Week

09Apr08

1. Immigrants are saving Social Security. More workers means more tax revenue for the program. Undocumented workers help the system even more. These workers pay taxes while they work but tend not to collect their benefits later. Also more immigrants are entering the country at younger ages and having children of their own who will later pay into the system, easing the demographic lopsidedness the baby boomers’ retirments foretell.

2. Social Security is a Women’s Issue. Often Social Security is the only income sourse keeping women from poverty. Women still only earn an average of 74% of what men do. Women leave the work-force for an average of 15% of their working careers to care for children, spouses, or parents. In addition women live an average of seven years longer than men. Social Security works for women because it is a program where every worker pays in and every retired worker receives a guaranteed benefit for life.

3. Social Security is particularly essential for minorities. Minorities rely on the program for more of their retirement income than whites. Social Security reduces minority poverty. The progressive nature of the Social Security tax is beneficial to minorities (and other low-wage earners). Minority retirees are less likely than others to have income from savings, stocks, bonds or other wealth generating assets. As a result, Social Security means more to them.