America has a vast and elaborate system of public policies supposedly designed to help us all save for retirement and avoid the catastrophe of a penurious and poverty-stricken old age.

But does this system end up shortchanging the middle class that is the backbone of the country and the economy? That’s the accusation of a new report from the National Institute for Retirement Security, a nonpartisan think-tank. It’s hard to argue they’re wrong.

Actually, they may not even go far enough — but more on that in a moment.

“The middle class is left behind by the retirement savings system in key ways,” report authors Tyler Bond, the NIRS research manager, and Dan Doonan, the executive director. “Social Security replacement rates are too low for middle-class families to maintain their standard of living in retirement, but many middle-class households don’t reach the level of income and savings needed to truly benefit from the tax incentives for individual savings. This means the middle class too often is missing out in terms of benefiting from various retirement savings programs.”

In other words we have a progressive Social Security system specifically designed to help the lowest earners and a tax break system designed to help the highest earners.

Spot the group that’s missing.

Social Security is essentially an insurance program designed to minimize absolute poverty in old age. So it is structured in a clearly progressive way. The less you earn, the higher the percentage of your income it will replace. As the NIRS points out, those earning low amounts may get benefits equal to two-thirds or more of their working-age income. Meanwhile those in higher income groups may get 30% or less.

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