A Perspective on Social Security’s Solvency Crisis - uk.yahoo!finance
Several weeks ago, we commented on the results of a survey by financial services company Nationwide suggesting that 71 percent of adults believe Social Security would run out of money in their lifetimes. Whether you believe that or not, it’s certainly reasonable to have some degree of trepidation about the program’s future and the impact its financial situation may have on retirees in the future. Although to many it seems unlikely that the result will be the more than 20% benefit cut forecasted by the program’s trustees in their 2021 annual report, rational thinking holds that there will be changes ahead. In a post on uk.yahoo!finance, columnist Cameron Huddleston provides conjecture on how these changes might unfold, starting with a look at the worst-case scenario (benefits cut) and working through a list of actions that have been considered as potential “fixes” to resolve the solvency problem.
Ms. Huddleston’s article discusses six of the more likely “corrective” measures floating through today’s media rhetoric, from the obvious–almost reflexive–action of raising taxes to the punitive step of curtailing the annual cost-of-living adjustments that help keep retirees out of poverty. She comments on each of these “fixes” in the context of how they would affect the state of Social Security in 2035 or, in other words, what individuals depending on the program would experience if they were to be enacted. It’s a thought-provoking analysis to be sure, and you can access it in full here…
Without question, Social Security’s financial problem is a serious issue. The Association of Mature American Citizens (AMAC) has been at the forefront trying to strengthen Social Security by developing and proposing its Social Security Guarantee. AMAC has been discussing and continues to discuss this common-sense solution with Congressional Representatives in its efforts to protect America’s senior citizens who rely on Social Security. To review AMAC’s Social Security Guarantee, click here.