7 Reasons Sen. Warren’s Social Security Plan Will Fail
Sean Williams of The Motley Fool takes aim at Sen. Elizabeth Warren’s (D-MA) plan to increase beneficiary payouts by $200 a month, or $2,400 a year. Her plan would also update a number of rules, and set minimum monthly benefits at 125% of the federal poverty level and end the Windfall Elimination Provision and the Government Pension Offset facing selected public sector workers. Warren would alter the inflationary adjustment from the current Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) to a new Consumer Price Index for the Elderly (CPI-E). With the program currently headed for insolvency, new spending creates still more problems long term, according to Williams. But the plan’s failure to address longevity and demographic issues already putting strain on Social Security is its greatest weakness. Read full piece here.
The Association of Mature American Citizens (AMAC) takes a different approach. AMAC believes Social Security must be preserved and modernized. This can be achieved by making modest changes in cost of living adjustments and the retirement age, with no additional taxes on workers. AMAC advocates for a bipartisan compromise, “The Social Security Guarantee Act,” taking selected portions of bills introduced by former Rep. Johnson (R-TX) and current Rep. Larson (D-CT) and merging them with the Association’s own well researched ideas. One component is Social Security PLUS, a new, voluntary plan that would allow all earners to have more income available at retirement. This component is intended to appeal especially to younger workers. AMAC is resolute in its mission that Social Security be preserved and modernized and has gotten the attention of lawmakers in DC, meeting with a great many congressional offices and their staffs over the past several years. Read AMAC’s plan here.