Tags: America's Forum | Social Security | Nancy Altman | Newsmax TV | efficient

Social Security Expert Altman: The System Is Actually 'Extremely Efficient'

By    |   Tuesday, 10 March 2015 02:04 PM

 
Don't believe all the stories you hear about the Social Security system heading toward financial disaster, Nancy Altman, co-director of advocacy group Social Security Works, told Newsmax TV.
 
"Social Security is extremely efficient," she said on the network's "America's Forum" show.
 
"It spends less than a penny of every dollar collected on administration. Any kind of insurance you find will have some problems, some overpayments and so forth. But Social Security has fewer than most private insurances and is much more efficiently run."
 
Story continues below video.


Note: Watch Newsmax TV now on DIRECTV Ch. 349 and DISH Ch. 223
Get Newsmax TV on your cable system – Click Here Now

But what about the greying of America, which should mean more Social Security recipients and less contributors?
 
"The United States is the wealthiest nation in the world. It is at its wealthiest point in history, which means it's the wealthiest nation in the history of the world," Altman said.
 
"It's much wealthier than it was in 1935 which Social Security was enacted, 1939 when it was expanded and in 1956 when disability was added. There's no question we can afford to expand Social Security, and facing a retirement income crisis, it's just what we should do."
 
At the very least, benefits should be increased, Altman said. "The benefits are modest by virtually any standard. We should also add some benefits. We're the only country in the world that doesn't have paid parental leave and paid sick leave. Those fit perfectly within the concept of Social Security. "
 
Will President Barack Obama's immigration order, which will make thousands more people eligible for Social Security, cause a problem?
 
"Actually, it works just the opposite," Altman said. "The immigration order will actually help Social Security's financing, because immigrants tend to be younger and tend to have larger families, so you have more people paying in and fewer drawing out." Illegal immigrants aren't allowed to receive Social Security, she noted.
 
As for financing concerns, "Social security is an earned benefit, so you cannot recollect unless you've earned and paid in for 40 quarters," Altman explained. "No one will be getting benefits on a day if they haven't worked legally."
 
The idea that our nation can't afford Social Security is a myth, Altman said.
 
"It is extremely affordable, and at the most expensive will cost about 6 percent of our gross domestic product. That 6 percent, that's when every baby boomer has retired. It's about half of what Germany, France and many other countries pay for their counterpart programs. The question isn't one of math, it's one of what the American people want."
 
And how can we put Social Security's finances on sounder footing?
 
"The leading proposal for bringing in new revenue is to what they call scrap the cap. Every worker now pays 6.2 percent [in Social Security taxes] up to $118,500." But they don't have to pay after that.
 
"Many are saying everyone should pay the same percentage of their wages," Altman said. "That goes a long way to allowing us to pay benefits in full and on time."

Related Stories:
 

© 2020 Newsmax Finance. All rights reserved.


   
1Like our page
2Share
StreetTalk
Don't believe all the stories you hear about the Social Security system heading toward financial disaster, Nancy Altman, co-director of advocacy group Social Security Works, told Newsmax TV.
Social Security, Nancy Altman, Newsmax TV, efficient
539
2015-04-10
Tuesday, 10 March 2015 02:04 PM
Newsmax Media, Inc.
 
Newsmax TV Live

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved