Strengthening Social Security for Vulnerable Groups

Abstract:     
Declining home values, lost savings, and corporate pressures to cut pension costs are undermining retirement security for seniors. At the same time, job losses, pay cuts, and mortgage foreclosures are jeopardizing workers’ dreams of a secure retirement. The recent stock market collapse has resulted in the loss of $2 trillion in private retirement funds. In light of the current financial crisis, Social Security is more important than ever. Hidden in the shadows of the unemployment and home foreclosure figures of the Great Depression were elderly parents dependent on their adult children for support. When those children lost their jobs, seniors lost this support. When those children lost their homes, so did their parents who generally resided with them. Thanks to Social Security, this is one problem the country does not now face. By exposing the profound vulnerability of rank and file Americans to the risks of a market economy, the financial crisis points to the need to address the adequacy of Social Security to help retirees and families offset losses elsewhere. A window exists to shape public policy to strengthen Social Security to better meet the needs of elders, people with disabilities, and working families in the 21st century.

Number of Pages in PDF File: 68

working papers series