Social Security if a “government shutdown” occurs, plus more about SS solvency - MorningStar
We’ve previously posted reassurances that Social Security benefits will continue to be paid even if a “government shutdown” occurs due to Congressional bickering over the budget for the forthcoming fiscal year. Just to reiterate and emphasize – Social Security payments to beneficiaries will not be affected if the government “shuts down” during budget negotiations! SS benefits simply aren’t a part of budget negotiations and, thus, will not be affected, as is articulated in the first half of this excellent Morningstar article by Mark Hulbert. But the second half of the article digs deeper and delves into the common myth that there is no money in Social Security’s Trust Funds because politicians have squandered the money for other purposes – a total misconception that the author debunks. The author goes on to reveal the key thing Social Security beneficiaries should be worried about – Social Security solvency. Click here to understand why a government shutdown won’t affect Social Security payments, to learn the truth about the money in the Social Security Trust Funds, and to understand the real threat to Social Security.
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.