The Case for Simplifying Social Security Benefits

The Social Security benefit formula is far more complex than those used for private sector defined benefit pensions. This has two important effects on retirement security. First, most ordinary Americans are incapable of calculating their own benefits, with the result that many people have no idea what their benefit will be until the first check arrives. Second, the benefit formula's complexity results in many households with identical lifetime earnings receiving very different benefit levels. This undermines the social insurance value of the Social Security program.

At this event, AEI resident scholar Andrew Biggs will address members of the Savings and Retirement Forum about the present system and propose reforms that could create a more transparent and effective retirement program.

About the Author

 

Andrew G.
Biggs
  • Andrew G. Biggs is a resident scholar at the American Enterprise Institute in Washington, DC. Prior to joining AEI he was the principal deputy commissioner of the Social Security Administration (SSA), where he oversaw SSA's policy research efforts and led the agency's participation in the Social Security Trustees working group. In 2005 he worked on Social Security reform at the National Economic Council and in 2001 was on the staff of the President's Commission to Strengthen Social Security. Andrew’s work at AEI focuses on Social Security reform, state and local government pensions, and comparisons of public and private sector compensation. His work has appeared in academic publications as well as outlets such as the Wall Street Journal, New York Times and Washington Post, and he has testified before Congress on numerous occasions. He holds a Bachelors degree from the Queen's University of Belfast, Masters degrees from Cambridge University and the University of London and a Ph.D. from the London School of Economics.
  • Phone: 202-862-5841
    Email: andrew.biggs@aei.org
  • Assistant Info

    Name: Rohan Poojara
    Phone: 202-862-5852
    Email: rohan.poojara@aei.org
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