Social Security proposals raise stakes for senior homeowners

"Ideas cited by the Brookings Institution from the Progressive Policy Institute, the American Enterprise Institute (AEI) and the Cato Institute all recommend shifting the program away from its current wage-replacement structure toward a flat benefit aimed primarily at preventing poverty in old age. Supporters say a flat benefit would guarantee a basic income floor. Critics warn it would weaken a program that most Americans view as earned insurance and could expose middle-income retirees and homeowners to greater financial risk."

"Andrew Biggs of AEI proposes a benefit equal to 28% of the national average wage for single retirees and 41% for couples. Using 2024 wage projections, that would translate to about $19,600 annually for singles and $28,600 for couples. While those amounts exceed the federal poverty threshold, they are significantly lower than current benefits for many middle-income retirees. For senior homeowners facing rising property taxes, insurance premiums and home repair costs, a flatter benefit could mean less margin for unexpected expenses, Brookings said."

Proposals from the Progressive Policy Institute, AEI, and the Cato Institute call for shifting Social Security from a wage‑replacement program to a flat benefit focused on preventing old‑age poverty. Social Security currently replaces a percentage of past earnings with higher replacement rates for lower‑wage workers, offering predictability crucial to homeowners. AEI proposes benefits equal to 28% of the national average wage for singles and 41% for couples, roughly $19,600 and $28,600 in 2024 projections. Poverty among adults 65+ was about 6% in 2021 when underreported income is included. Critics say a flat benefit could weaken earned insurance and expose many middle‑income retirees and homeowners to greater financial risk.

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