Social Security

Goal: Social Security should be sufficient in providing a "secure" retirement (in tandem with auto-enrolled 401k?)

How to improve social security and make it stable over the long-term (stolen from William Novelli georgetown professor, former CEO of AARP).

Revenue side:
- raise taxable raise base. Currently millionaires only pay SS tax on 10% of their earnings, while 94% of all workers pay SS tax on all earnings
- expand SS to all workers. Currently a lot of state/gov't worker are exempt because they have other pension systems; change this for newly hired employees.
- put a small percent of the funds (15% [or less]) in an index fund

Benefit side:
- index benefits to longevity
- peg retirement age (and early retirement age) to life expectancy
- scale benefits back for mid-high wage earners; means testing


Andrew Biggs (AEI and former ~'SS administrator')
- means testing
- auto-enrollment in 401k's
- increase retirement age
- don't increase tax side because it discourages people