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More on the New Trump Plan for Retirment Accounts - Axios.com
Just a few days ago, the Congressional Budget Office weighed in on the full depletion date for Social Security’s trust funds, projecting 2032 as the point where the program would be forced to shift to a cash-in/cash-out operating mode. Absent congressional corrections, of course, that shift would be accompanied by an across-the-board benefit cut of anywhere from 20% to 24%. To say that’s worrisome would be an understatement, especially for those without alternate financial resources to fill the gap. For future retirees planning their cash flow in retirement, it poses a substantial potential hurdle.
Enter the plan announced at Tuesday’s State of the Union address to offer Americans access to a retirement account similar to those available to federal workers. To be sure, there are several moving parts in this plan, some likely to require legislative action, some modeled after the existing Thrift Savings Plan for federal employees, and some possibly reflecting concepts woven into other countries’ retirement planning.
It will be interesting to watch this announcement unfold alongside the growing interest in attacking Social Security’s looming insolvency problem. Expect to see many informative articles as more is revealed, as in a post today by Axios national correspondent Emily Peck.