Should Social Security Benefits be Based on Need?

Social Security is supposed to help retirees by providing a source of income after they are no longer receiving a paycheck from their jobs. A keyword there is “source” of income. Unfortunately, especially in today’s economic climate, Americans are retiring without a nest egg and are relying heavily, in some cases solely, on Social Security.

As The Motley Fool explains, Social Security is funded by payroll taxes. That means anyone who held a job and paid their taxes, provided they earned the required 40 credits, is entitled to receive Social Security benefits. Some people think that’s unfair and question why millionaires and billionaires are receiving retirement benefits, preferring that the money be allocated to struggling seniors.

It’s certainly something to question, especially as Social Security faces a growing deficit and may be forced to slash benefits in the coming years.

The Seniors Trust believes the best way to ensure Social Security sustainability is for Congress to enact the Social Security Expansion Act. This landmark piece of legislation will give retirees an immediate benefits increase of about $200 a month, a fair annual cost-of-living adjustment (COLA), increased minimum benefits, and ensure the long-term solvency of the Social Security program.