Tag: benefit generosity

Senior black woman calculating her retirement annuity at home

Social Security’s design is known to help Black individuals and those with lower socioeconomic status due to the progressive benefit formula, but this effect is partially offset by the shorter life expectancies of these groups.  However, valuing Old-Age and Survivors Insurance (OASI) solely on expected benefits neglects the program’s longevity insurance value, which favors individuals…

Close up of archer with bow and arrow ready to launch

The Wall Street Journal ran an op-ed recently by Andrew Biggs entitled “New Evidence on the Phony Retirement Crisis.”  The thrust of Biggs’ argument is that the average guy gets a pretty high benefit from Social Security; couple those benefits with 401(k) saving and he will be fine in retirement.  So where’s the crisis? T…