Pros and Cons of an Optional Social Security Program - AMAC & Yahoo Finance
Dawn Alcott has a fascinating piece here showing how younger people, 31% of polled millennials and Gen Z, increasingly feel Social Security should be optional. It is not an idea facing any serious consideration on Capitol Hill, but there are pros. They include receiving a greater return on private investments and greater control over saving for retirement. It would help alleviate concerns that workers will never get back the money they paid in if the trust fund runs out in 2034. Lastly, people could devote more money to current living expenses. On the con side of the idea is an accelerated timeline for the Social Security trust fund to run dry, other investments are not as reliable or guaranteed, and that Social Security is adjusted for inflation, while investments are not. Finally, it may remove a safety net many older Americans rely on. Read the full article 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.