Due to high unemployment, Social Security — now in its 75th year — will pay out more in benefits than it receives in FICA contributions in 2010. The federal government has money in reserves to continue to pay out full benefits until 2037. After that point, if no action is taken, benefits would be reduced by approximately one quarter of current payments.
With the midterm elections on the horizon, a new fight is brewing over the state of the federal retirement program. We talk with two experts about what should or shouldn't be done to Social Security.
- James Roosevelt, CEO of Tufts Health Plan; former associate commissioner for Retirement Policy for the Social Security Administration; grandson of Franklin D. Roosevelt.
- Laurence Kotlikoff, economics professor at Boston University and author of "Jimmy Stewart is Dead: Ending the World's Ongoing Financial Plague with Limited Purpose Banking."
This program aired on August 16, 2010.