Not sure if this diary makes it to the recommended list, but it deserves to up there...
Bruce, could you also talk about the effect of undocumented workers paying into the social security system. Also, my dad who is retired and is still working, also pays into social security. But now that he collects social security already, the FICA taken out of his check does not contribute to his social security benefit level. I think a lot of baby boomers/recently retired people will be in the same position as my dad--working even after collecting social security. That pile of money like undocumented workers isn't accounted for in the social security actuaries is it?
Thanks....
Seems to be the accepted figure. But this I think is only for people using fake numbers. That is if a legal immigrant took some time off and lent his name and card to an illegal I don't see any mechanism that would capture that. Not I think that significant in the overall scheme of things.
I am not an expert on the internal administration of benefits. Soc Sec maintains a pretty through website. This page says that if your Dad's current year income is one of his highest 35 that they will recompute the amount each year. http://www.ssa.gov/pubs/10069.html#incre ase I don't know whether this would offset the current cost, it would depend on how much more his current income is over the average. All in all though the system was much improved. Previously there was an outright penalty for people working over full retirement age (just as there still is for people working after early retirement).
