Social Security Insolvency: An Intergenerational Dilemma! - PGP Foundation
These days, the media is full of stories about Social Security’s financial status, with much emphasis on possible benefit cuts beginning in about the year 2032. And with that widespread coverage, many are nervous about the nation’s primary retirement program going away, or not paying full benefits. This nervous feeling is especially true for America’s younger generations, many of whom believe that Social Security won’t be there for them at all, or won’t be enough to sustain their future retirement.
Social Security’s financial problems are real, as explained in this article by the Peter G. Peterson Foundation, a highly respected think tank for Social Security and economic matters. And those who will most likely be most affected by any Congressional solution reforming the Social Security program are those in America’s younger generations. Traditionally, Social Security reform targets those who will not be collecting benefits for years into the future. Thus, the intergenerational dilemma described in this article – one which suggests that our younger generations make their voices heard. Click here to read more.
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.