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A Quick Summary of the Insolvency Problem - Chicago Star; AMAC
Social Security’s steadily deteriorating financial situation receives considerable attention in the press, with pundits continually assessing the causes, assigning blame, and discussing the potential implications. At this point, the vast majority of folks receiving Social Security benefits or aging into eligibility for benefits share an awareness of the potential catastrophe ahead. However, if you are not up to date on the latest developments, a post by Chicago Star’s Amir Farooq provides a concise summary of the issue. Check it out here…
The Farooq post is a quick read, setting the stage for understanding Social Security’s predicament. Reading it brings to mind a 1973 song by the late Jim Croce titled “It Doesn’t Have To Be That Way,” a theme that also pertains to the Social Security insolvency issue. Many organizations are actively researching the program’s financial situation, publishing position papers, restructuring plans, and opinion pieces on how to address the issue. The Association of Mature American Citizens (AMAC) is one such organization, offering its Social Security Guarantee as a legislative framework that has the potential to resolve the 75-year shortfall projected by the Board of Trustees.
AMAC believes Social Security must be preserved and modernized to meet the demands of 21st-century economics. AMAC’s position is that this can be achieved without payroll tax increases through relatively slight program modifications, including changes to the cost-of-living adjustment (COLA) process and modifications to the formulas for calculating payments to 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) improved survivor benefits, (4) eliminating the reduction in benefits for those choosing to work before full retirement age; and (5) improved savings tools for future retirees, including a savings account that builds estate value. AMAC is resolute in its mission to preserve Social Security for current and future generations and has garnered the attention of lawmakers in D.C., meeting with numerous congressional offices and staff over the past decade. To learn more about AMAC’s plans, click here.