Op-ed: Social Security is not in trouble - AMAC & The Washington Post
In a slightly contrarian view to what most experts say, the writer here suggests that simply lifting the payroll cap on Social Security wages will resolve the funding issue. That, however, buys just 12 more years of solvency, from 2034 to 2046. The writer also takes issue with another recent op-ed stating that the elderly are getting generous benefits compared to younger generations. As with most things, it just depends how one looks at the data. Benefits do not make one rich, and indeed are a mere 40% of pre-retirement income for most. The average benefit is around $1,838/mo for men and for women $1,484/mo, minus about $175 in Medicare payments. But, not noted is the fact that one gets back every dime ever paid into the fund while working plus interest in about 4-5 years. The author does correctly note Social Security does not add to the deficit, as it is self-funded, and that Medicare is the real elephant in the room contributing to federal budget deficits. Full op-ed here in the Washington Post.
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.