A Preview of Potential Social Security Changes - AMAC, The Motley Fool
As we’ve reported on this website persistently over the past several years, Social Security is facing a long-term solvency issue. Not bankruptcy, as the rumor mill frequently suggests, but rather the inability to fully pay the benefits promised to beneficiaries who have contributed tax revenue throughout their working lives. Many legislative initiatives have been introduced to address this impending crisis in time for correction before its 2035 arrival, with one of the leaders being the Association of Mature American Citizen’s (AMAC) Social Security Guarantee. So far, though, none of the proposed fixes have resulted in positive action, and the clock continues to run toward a scenario in which benefits are slashed by more than 20% across the board.
The gravity of this Social Security dilemma cannot but understated. And as the calendar marches forward, the end date comes closer and closer. In fact, the current economic upheaval associated with the COVID-19 will likely push the point of insolvency forward several years, perhaps bringing it to a point less than ten years away. The longer legislative inaction persists, the more severe the corrective actions will need to be to stabilize this critical benefit program for current and future retirees.
The Motley Fool’s Katie Brockman, in a post on their website, examines several changes to Social Security that could be in the offing, one of which of course is the across-the-board benefit cut mentioned above. Read Ms. Brockman’s post here. Then take a look at AMAC’s Social Security Guarantee here to get a feel for one of the potential solutions to the larger problem…one that does not call for an increase in workforce taxes.