A Quick Synopsis of Social Security’s Current Solvency Outlook
The rumors about Social Security’s impending demise seem to persist, as do the rumors about the government plundering the Social Security Trust Funds and reallocating their accumulated reserves to other causes. The facts are really quite different. First, Social Security currently enjoys a cash reserve that will remain for several more years, and after that the benefit payments will continue, albeit at a potentially reduced level. On the issue of government raiding the Trust Funds, the reality is that the reserves held by Social Security are actually invested in government bonds as a way to earn revenue for the program (in fact, in interest earnings in 2016 totaled $88 billion).
Those clarifications aside, Social Security is in need of corrective action, and the sooner the better. The Motley Fool’s Matthew Frankel, in a post on www.madison.com, explores the myths and realities surrounding the Social Security solvency issue, and offers some thoughts on potential steps to resolve the program’s long-term dilemma. Read his article here…
To be sure, the future of Social Security is not rosy. The program’s long-term solvency issue is real, and it’s no secret that this is not a self-correcting problem. The Association of Mature Americans (AMAC) is actively working toward a solution, and has developed a proposal for legislative action to resolve the dilemma without increasing taxes. Read more about this initiative on the AMAC website…
This posting is presented for informational purposes only and does not represent legal or financial guidance. Any opinions or interpretations presented are either those of the original author or, in the case of articles authored by the AMAC Foundation, are the opinions of AMAC Foundation staff, originally trained and accredited by the National Social Security Association (NSSA) and certified via the AMAC Foundation. Any links included in the article are valid on the posted date; socialsecurityreport.org cannot guarantee the duration of the links’ validity. NSSA and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration or any other governmental entity. To submit a question, visit our website (https://amacfoundation.org/services/) or email us at ssadvisor@amacfoundation.org. Because we are a non-profit organization, there is no charge for these services.