On Social Security Solvency, No Surprise… Americans Want Action! - National Institute on Retirement Security (NIRS)
Hardly a day goes by that doesn’t present media accounts of Social Security’s long-term financial problems, most with dire projections of a substantial benefit reduction in about a decade. The hand-wringing is intense, often highlighting the terrible effects of an across-the-board monthly benefit cut for the lower-income folks most vulnerable to the ravages of inflation and the mounting healthcare costs and simple living expenses in their later years. The National Institute on Retirement Security (NIRS) watches this subject carefully, and is closely attuned to the evolving attitudes among those most affected by the future of Social Security, often described as one of the most popular and most important government programs.
As part of its mission to contribute to informed policymaking on matters related to retirement, NIRS regularly researches public opinion on the plight of programs designed to support America’s seniors. As an example, the Institute recently reported the results of a study titled “Americans’ Views of Social Security,” noting strongly that “Americans don’t want leaders to kick the can down the road.” With the Social Security Board of Trustees sounding the insolvency alarm for almost three decades, this conclusion seems to indicate that those directly affected by the problem are growing weary of the procrastination in Congress that has consistently blocked forward progress on a resolution.
The NISR study, surveying over a thousand individuals age 25 and older, reports that “Eighty-seven percent say Congress should act now rather than waiting another ten years to find a solution. This sentiment holds strong across gender, age, and party affiliation.” In an article summarizing the study, McKight’s Senior Living author Kathleen Steele Gaivin notes that there are ” … pragmatic solutions to shore up Social Security’s financing, but what’s lacking is bipartisan action …” to address the problem. Click here to read Ms. Gaivin’s article, and click here to read the NISR summary on the study.
An example of a “pragmatic” solution can be found in the Association of Mature American Citizens’ (AMAC, Inc.) Social Security Guarantee. AMAC believes Social Security must be preserved and modernized. This can be achieved through slight modifications to cost-of-living adjustments and benefit calculations for high-income beneficiaries, coupled with gradual increases to the full (but not early) retirement age. AMAC supports an increase in the threshold where benefits are taxed and then indexed for inflation and calls for eliminating the reduction in benefits for those choosing to work before full retirement age. Summaries of the AMAC position–the AMAC Social Security Guarantee–can be viewed at AMAC.us.