A $6,638 Social Security Benefit Cut? Really? - AMAC & The Motley Fool
Yes, all Social Security benefits are due to be cut without congressional reform of a program that’s been barreling toward insolvency for decades. As Sean Williams noes in this comprehensive piece, the time of reckoning is almost here. He explains the demographic problem of increased longevity and fewer workers contributing and debunks the traditional “Congress stole the money” and “illegal aliens are getting it all” myths. His $6,638 calculation is the annual cut the average recipient will get in 2033 using an average 2.6% COLA between now and then. Williams puts the blame on Congress for failing to address the program’s troubles that have been known for decades. He goes through Democrat and GOP proposals for reform, with the former relying on tax increases and the latter preferring trimming benefits and raising the retirement age. Full piece here.
As an example of the leading thoughts on reforming Social Security, the Association of Mature American Citizens (AMAC, Inc.) believes Social Security must be preserved and modernized. This can be achieved without tax increases by slight modifications to cost of living adjustments and payments to high income beneficiaries plus gradually increasing the full (but not early) retirement age. AMAC Action, AMAC’s advocacy arm, supports an increase in the threshold where benefits are taxed and then indexing for inflation, and calls for eliminating the reduction in people’s benefits for those choosing to work before full retirement age. AMAC is resolute in its mission that Social Security be preserved for current and successive generations and has gotten the attention of lawmakers in D.C., meeting with many congressional offices and staff over the past decade.