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Please stop my 8% Social Security raise Seniors who opt to delay their Social Security retirement benefits stand to gain from the 8% per year increase in their benefits, but this increase is "economically indefensible and morally questionable," writes an expert in the Wall Street Journal. Unlike pension plans which rely on market returns to fund their payouts, Social Security puts its investments in U.S. Treasury debt, which yields only 1% in annual return, writes the expert, adding that the program is also funded by payroll taxes, which means it "levies on current economic output." As such, Congress should revamp Social Security to make the annual increases track the country's Gross Domestic Product, he argues. "If GDP increases 4.5% in a year, then seniors who have deferred collecting will receive a 4.5% increase in their eventual benefit. If GDP shrinks 2%, then so would the accruing benefit."
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