Notch Babies are painfully aware of the financial impact of the 1977 changes to the Social Security benefit formula that chiseled a “Notch” out of their benefits. Now, new research from Jeremy Moulton of the University of California has found that sons with fathers born in the Notch Generation have significantly lower wealth levels in comparison to those with fathers born just prior to those years. Moulton’s research found that the difference in wealth levels is due to decreased bequests and, to a greater extent, financial aid given to Notch Baby parents from their children.
TSCL continues to lobby for The Notch Fairness Act legislation that would provide Notch Babies born from 1917 through 1926, or survivors who receive benefits based on their account, $5,000 to be paid in 4 annual installments of $1,250 or a higher monthly benefit. As of July 30, 2011, the legislation has 30 co-sponsors.
What you can do: Let Congress know how you are impacted. Ask your Representative to cosponsor the The Notch Fairness Act (H.R. 1001).
Source: “Chiseling a Notch Out of the Next Generation’s Assets: Effect of the Social Security Amendments of 1972 and 1977 on Intergenerational Transfer Behavior,” Jeremy Moulton, University of California, November 14, 2010.
A similar version of the following Congressional Corner was originally published in The Hill Congress Blog and does not necessarily reflect the views of The Senior Citizens League.