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WARNING: Social Security insolvency coming in just eight years!
Brett Arends of MarketWatch has an op-ed that suggests the insolvency date for Social Security is barreling toward us sooner than expected. The official report from the Trustees is late this year but is due out within weeks. Arends cites one of the country’s leading experts, Olivia Mitchell, professor at the University of Pennsylvania’s Wharton School of Business and director of their Pension Research Council. She warns that the Social Security trust fund could run out of money as soon as 2029, five years ahead of official projections, because of the fallout from the Covid crisis. The last projection from the Trustees was 2034, though the Congressional Budget Office noted all reserves would be depleted in 2032. When insolvency occurs, all benefits will be cut to the level of payroll taxes coming in, thus everyone’s checks will be reduced about 24% absent congressional action to shore up the program’s finances. Full op-ed here.
The Association of Mature American Citizens (AMAC) believes Social Security must be preserved and modernized. This can be achieved with no tax increases by changing cost of living adjustments, the retirement age, and delayed credits. 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 research. One component is Social Security PLUS, a voluntary plan to allow all earners to have more income 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.
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