The Problem With Survivor Benefits:
These benefits are given out for nothing, and they are very expensive. The unhealthy worker with two children pays the exact rate structure as the healthy, single earner does. This creates a massive subsidy from single people to couples.
We recommend this change :
Split-Up The Old-Age/Survivor System Into Separate Funds:
Survivor benefits really provide life insurance for people who die at a young age. Old-age insurance is virtually the exact opposite. It provides insurance against out-living your resources. These are very different concepts, and lumping them together creates an invititation to failure - as what we have today.
These changes are examples of ways to match the cost of survivor benefits to what people have contributed :
Strictly Means Test Survivor Benefits:
This change would end Social Security checks going to children of the wealthy, and it would be measured against the size of the estate reported to the IRS.
Make Survivor Benefits Optional:
This change would allow workers to select survivor benefits. If the worker wanted survivor benefits, a portion of the contribution would go to a separate fund.