A Growing Mortality Gap Is Letting the Rich Get Richer From Social Security

Social Security is broadly progressive, meaning it is relatively more beneficial for lower-income recipients, reports the Los Angeles Times . But that is changing, mostly due to a widening gap in life expectancy between rich and poor. Although higher-income individuals receive lower monthly benefits relative to their lifetime earnings than lower-income workers, they collect benefits for longer periods on average simply because they live longer. The trend has triggered a debate among Social Security advocates about how to restore the program's traditional balance. Among the ideas being debated is reducing the credit for delayed retirement. The delayed retirement credit has been getting more attention as a means of redressing the mortality imbalance in part because it is so clearly a boon for wealthier workers. But the people who would be most disadvantaged tend to have the strongest political voice. It is also true that many retirees and near-retirees have made their retirement choices based on the existing credits and penalties, and it would not be fair to change the rules for them. That means that any alteration probably cannot be implemented in the near term.