A Bipartisan ‘Big Idea’ is in the Works on Social Security - AMAC & CNBC
“The absolute worst investment strategy you could have right now.” So says Sen. Bill Cassidy (R-LA) on Social Security’s trust funds, which are due to be depleted in a decade. Cassidy is working with Sen. Angus King (I-ME) on an idea that calls for creating an investment fund separate from Social Security and allowing the investment to earn returns over a period of 70 years. Cassidy notes a key failing of Social Security’s current strategy is keeping all of the trust funds in Treasuries and cash. Yields are anywhere from 1% to 3%, but inflation has been up to 7%. Cassidy further states that by allowing the program to invest its funds in the market, which historically has provided more than 8% returns, 75% of the 75-year shortfall could be addressed. He is calling on leading presidential candidates to step up and address this issue. Full explanation in this piece by Lorie Konish of CNBC here.
The Association of Mature American Citizens (AMAC) believes Social Security must be preserved and modernized. This can be achieved without tax increases by changing cost of living adjustments, increasing the retirement age, and modest adjustments to the highest income beneficiaries. The AMAC plan also suggests eliminating taxation of benefits, or at least annually adjusting the amount taxed for inflation, and eliminating the reduction of benefits for those who work before full retirement age. 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 a great many congressional offices and their staffs over the past decade. See it here.