Saving the American Dream

The Heritage Plan to Fix the Debt, Cut Spending, and Restore Prosperity

How it Covers Social Security

Transforming Social Security into true insurance that retirees can rely on, plus a guarantee against poverty in retirement.

Social Security is already operating in the red and faces a long-term deficit of $7.7 trillion. Currently, workers who can't save enough for retirement must depend on Social Security, but with no guarantee they won't still sink into poverty. The Heritage flat-benefit plan ensures that Social Security will keep all retirees out of poverty.

A flat benefit with a guarantee against poverty

The centerpiece of the Heritage plan is a flat Social Security benefit which guarantees that no retiree will ever fall into poverty. The current system offers no such guarantee.

Preserving Social Security for future generations

For workers born after 1983, the flat-benefit will be phased in slowly. These workers will also have greater flexibility to plan for retirement. To keep the system solvent, benefits for the wealthiest 9 percent of retirees will be reduced. This transparent reduction gives upper-income Americans more clarity than today's surreptitious tax on their benefits.

The fairness and stability of a true insurance program

Our plan halts the unsustainable promise of benefits to all regardless of need. We convert Social Security into true insurance that supplements income for retirees who need it. For the more affluent, benefits will be quickly restored in cases of sudden reversals.

A new savings plan to supplement Social Security

Over a two-year period starting in 2014, first 3 percent and then 6 percent of your income will go into a retirement savings account that you own and control, like an IRA or 401(k) plan. You may save more or less, or even opt out if you choose. The money you put into these accounts will not be double-taxed.