The AMAC SSG: How does it align with Social Security’s Purpose? - AMAC Foundation
Social Security’s establishment 90 years ago followed the Great Depression and, as such, had a twofold purpose: to provide immediate assistance to destitute families in the wake of devastating financial losses in their retirement savings, and to create a long-term, contributory, work-based insurance system designed to prevent future poverty. The short-term purpose involved federal grants to states to support the needy, while the long-term purpose sought to create a social insurance program, financed through payroll tax contributions that would help prevent old-age poverty among the most vulnerable.
So, here we are, in 2026, grappling with a steadily evolving financial catastrophe that threatens to undermine Social Security’s long-term goal. Projections indicate that within the next six years, Social Security’s financial reserves will be fully depleted, forcing an across-the-board benefit reduction that would push millions of seniors below federal poverty guidelines. This is, of course, not a new revelation, since warnings have been issued by the Social Security trustees for decades, and since the program’s primary revenue source–the payroll tax–has fallen short of benefit outlays since 2010.
The Problem is Well Known, but what’s the solution?
Hundreds of proposals to modify Social Security’s methodologies to avoid the insolvency predicament related to trust fund depletion have been submitted for actuarial review, and each has pros and cons. What is truly needed is a package of recommended changes that would address the immediate funding problem and extend Social Security for generations to come. Not a trivial thing, by any means, but thoughts are emerging on how to accomplish just that.
One such proposal is the Association of Mature American Citizens’ Social Security Guarantee, a 15-point plan based on three prime directives:
- Guarantee an annual increase in benefits for all, with emphasis on those with lower earnings, to ensure the program stays true to its mission: keeping seniors out of poverty.
- Guarantee achieving solvency and ensure benefits continue without automatic cuts.
- Guarantee all earners the opportunity to create more income available at retirement through work and improved retirement savings programs.
The complete Social Security Guarantee (SSG) is available for review on the AMAC.us website, and has been presented to numerous congressional offices for consideration and to Social Security Administration officials for review. But how does the SSG align with Social Security’s long-term premise from nine decades ago?
AMAC SSG and old-age poverty
Within the SSG’s details, there are several key recommendations that would work in this direction. First, the SSG proposes a change to the annual cost-of-living adjustment (COLA) process that would redistribute annual COLA dollars to award a higher benefit increase to those with monthly benefits below the average. For seniors remaining in or reentering the workforce, the SSG recommends eliminating the “Retirement Earnings Test” to enable those who’ve claimed benefits before their full retirement age to either earn more or save more. The SSG also includes recommendations to improve survivor benefits for lower-income households and, for those years away from benefit eligibility, recommends enhanced savings opportunities to build wealth.
The SSG addresses the $25 trillion 75-year shortfall by curtailing benefits for some future retirees, but these changes are targeted only at higher earners and include provisions to shield lower earners from the impact. Also, the SSG recommends no increase in the payroll tax, a provision that would benefit low-wage earners proportionally.
Overall, the SSG would avoid the need to cut benefits, which, as noted earlier, would push millions of vulnerable seniors further into poverty.