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Retirement safety net or a ticking fiscal time bomb?
Jim Blankenship notes the answer isn’t so simple as to whether Social Security is a retirement safety net or fiscal time bomb. He points out the demographic challenges that will necessitate 20% or greater across the board cuts in a decade. He also discusses the political challenges. Blankenship believes the likely solution to both challenges is that benefits may be taxed differently than in the past and that there will be adjustments to the benefit structure for future beneficiaries. This will coincide with a payroll tax increase and/or increasing or eliminating the taxable wage cap altogether. Full article here.
The Association of Mature American Citizens (AMAC) believes Social Security must be preserved and modernized. This can be achieved without tax increases by changing cost of living adjustments, increasing the retirement age, and modest adjustments to the highest income beneficiaries. The AMAC plan also suggests eliminating taxation of benefits, or at least annually adjusting the amount taxed for inflation, and eliminating the reduction of benefits for those who 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 a great many congressional offices and their staffs over the past decade. See it here.