<P> The last graph shown (Figure 167) is a combination of Figures 165 and 166 . In this graph it is very clear why generalizations about the value of Social Security benefits are meaningless . At the $95,000 wage level a married person could be a big winner--getting net benefits of about $165,000 . On the other hand, he could lose an estimated $152,000 in net benefits if he remains single . Altogether, there is a "swing" of over $300,000 based upon the marriage decision (and the division of earnings between the spouses). In addition there is a large disparity between the high net benefits of the married person earning $95,000 ($165,152) versus the relatively low net benefits of the man or woman earning just $5,000 ($30,025 or $41,890, depending on gender). In other words, the high earner, in this scenario, gets a far greater return on his FICA tax investment than does the low earner . </P> <P> In the book How Social Security Picks Your Pocket other factors affecting Social Security net benefits are identified: Generally, people who work for more than 35 years get a lower net benefit--all other factors being equal . People who do not live long after retirement age get a much lower net benefit . Finally, people who derive a high percentage of income from non-wage sources get high Social Security net benefits because they appear to be poor, when they are not . The progressive benefit formula for Social Security is blind to the income a worker may have from non-wage sources, such as spousal support, dividends and interest, or rental income . </P> <P> Proposals to reform of the Social Security system have led to heated debate, centering on funding of the program . In particular, proposals to privatize funding have caused great controversy . </P> <P> Although Social Security is sometimes compared to private pensions, the two systems are different in a number of respects . It has been argued that Social Security is an insurance plan as opposed to a retirement plan . Unlike a pension, for example, Social Security pays disability benefits . A private pension fund accumulates the money paid into it, eventually using those reserves to pay pensions to the workers who contributed to the fund; and a private system is not universal . Social Security cannot "prefund" by investing in marketable assets such as equities, because federal law prohibits it from investing in assets other than those backed by the U.S. government . As a result, its investments to date have been limited to special non-negotiable securities issued by the U.S. Treasury, although some argue that debt issued by the Federal National Mortgage Association and other quasi-governmental organizations could meet legal standards . Social Security cannot by law invest in private equities, although some other countries (such as Canada) and some states permit their pension funds to invest in private equities . As a universal system, Social Security generally operates as a pipeline, through which current tax receipts from workers are used to pay current benefits to retirees, survivors, and the disabled . When there is an excess of taxes withheld over benefits paid, by law this excess is invested in Treasury securities (not in private equities) as described above . </P>

When did the age change for social security