A Quick Synopsis of Social Security’s Current Solvency Outlook
The rumors about Social Security’s impending demise seem to persist, as do the rumors about the government plundering the Social Security Trust Funds and reallocating their accumulated reserves to other causes. The facts are really quite different. First, Social Security currently enjoys a cash reserve that will remain for several more years, and after that the benefit payments will continue, albeit at a potentially reduced level. On the issue of government raiding the Trust Funds, the reality is that the reserves held by Social Security are actually invested in government bonds as a way to earn revenue for the program (in fact, in interest earnings in 2016 totaled $88 billion).
Those clarifications aside, Social Security is in need of corrective action, and the sooner the better. The Motley Fool’s Matthew Frankel, in a post on www.madison.com, explores the myths and realities surrounding the Social Security solvency issue, and offers some thoughts on potential steps to resolve the program’s long-term dilemma. Read his article here…
To be sure, the future of Social Security is not rosy. The program’s long-term solvency issue is real, and it’s no secret that this is not a self-correcting problem. The Association of Mature Americans (AMAC) is actively working toward a solution, and has developed a proposal for legislative action to resolve the dilemma without increasing taxes. Read more about this initiative on the AMAC website…