Could a Universal Social Security Benefit Actually Work?

The average senior on Social Security will collect $1,543 a month next year, but some beneficiaries will get a lot less, and many will get more. There's a special formula that goes into calculating benefits, but ultimately, the monthly payouts seniors receive are based on their individual wage histories. A group called the Heritage Foundation, however, wants to change that. The organization is proposing a universal Social Security benefit for all seniors rather than basing benefits on individual earnings. It's an interesting idea -- but could it really work?

As one might expect, higher earners are generally entitled to more robust Social Security benefits than lower earners despite needing the money less. The goal of universal benefits would be to level the playing field among retirees and give low-income seniors a much-needed boost.

Image source: Getty Images.

Continue reading

Source Fool.com