Is a cap on Social Security benefits the answer - 401K Specialist
The Committee for a Responsible Federal Budget (CRFB), a nonprofit organization dedicated to educating the public on issues related to significant fiscal policy, has published a white paper calling for legislation to limit the highest payouts to wealthy beneficiaries in an effort to extend the program’s solvency. In their proposal, they would set a $100,000 cap on the total benefit a couple retiring at their full retirement age can receive starting this year. Brian Anderson, writing for 401K Specialist, outlines the CRFB’s six-figure Social Security cap proposal. Read Mr. Brian Anderson’s article here…
As an example of leading thinking on reforming Social Security, the Association of Mature American Citizens (AMAC, Inc.) believes Social Security must be preserved and modernized to serve future generations. AMAC’s position is that this can be achieved without payroll tax increases through relatively minor program modifications, including changes to the cost-of-living adjustment (COLA) process and modifications to the formulas for calculating initial benefits for higher-income beneficiaries. Changes to the age for maximizing benefits are included in AMAC’s position, along with (1) an increase in the thresholds where benefits are subject to income tax; (2) indexing of these thresholds annually to account for inflation; (3) changing the taxable maximum formula to address the unintended loss of revenue; (4) improving survivor benefits, (5) eliminating the reduction in benefits for those choosing to work before full retirement age; and (6) improving savings tools for future retirees, including a savings account that builds estate value. 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. See AMAC’s proposal for Social Security reform here.
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