End Social Security and Other Defined-Benefit Pension Schemes They are intrinsically racist and sexist.
Consider two people, Alice and Bob. Alice is an Asian-American female, while Bob is an African-American male. From the point of view of Social Security, they are identical in every respect: they are the same age, they make the same contributions of the same amount on the same date, and retire at the same time. For the sake of argument, suppose they begin taking SS payments at age 70.
Given that Alice and Bob have made exactly equivalent contributions to the system, you would expect their payout to be roughly comparable. This is not even close to being the case, because of differences in life expectancy between different demographic groups. Asian-American life expectancy is 86.3 years, while for African-Americans, it is 75.0 (source) Furthermore, women enjoy about a 4 year life expectancy advantage over men. So Alice can expect to live to about 88 years, while Bob can only expect to live to about 73. That means Alice receives a 6x greater benefit from SS than Bob − 18 years of payments vs 3 years, in expectation—even though they contributed the exact same amounts.
End Social Security and Other Defined-Benefit Pension Schemes They are intrinsically racist and sexist.
Consider two people, Alice and Bob. Alice is an Asian-American female, while Bob is an African-American male. From the point of view of Social Security, they are identical in every respect: they are the same age, they make the same contributions of the same amount on the same date, and retire at the same time. For the sake of argument, suppose they begin taking SS payments at age 70.
Given that Alice and Bob have made exactly equivalent contributions to the system, you would expect their payout to be roughly comparable. This is not even close to being the case, because of differences in life expectancy between different demographic groups. Asian-American life expectancy is 86.3 years, while for African-Americans, it is 75.0 (source) Furthermore, women enjoy about a 4 year life expectancy advantage over men. So Alice can expect to live to about 88 years, while Bob can only expect to live to about 73. That means Alice receives a 6x greater benefit from SS than Bob − 18 years of payments vs 3 years, in expectation—even though they contributed the exact same amounts.
Why would you believe that to be uncontroversial?