Is Social Security racist?:
S&P 500 Hits Second-Straight Record High As Experts Warn Of ‘Excessively Bullish’ Stocks—How Much Higher Could They Go This Year?
The good news in this part of the story is that health is improving and the longevity gap is narrowing. Between 1999 and 2013, reports the National Center for Health Statistics, life expectancy at birth for the whole U.S. increased from 77.3 to 79.1 years; during that time the racial gap at birth narrowed from 5.9 to 3.6 years.
Also mitigating life’s inequities is that Social Security redistributes wealth. People pay in at a flat rate on the wage base but draw out on a progressive scale. The payout formula credits a higher percentage of taxable earnings at the low end than at the high end., Eugene Steurle and others at the Urban Institute did the arithmetic, concluding that whites get an outsized return on investment in Social Security taxes.
They would, if the stock market cooperates. But what happens when retirees convert their stock funds into monthly pensions? They might leap out of the frying pan and into the fire.this year on the value of immediate annuities bought from insurance companies. Blacks, because their lifespans are shorter, get a crummier deal than whites.
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