AMAC Seeks to Preserve & Modernize Social Security - AMAC

When more Generation Xers [now age 40-55] said they believed in UFOs than that Social Security would be there for them at retirement, it was as shocking as recent polls showing Millennials’ fondness for socialism.  It was also a wakeup call.  Urgent action is required in the 2021-22 Congress to reform Social Security.  The proverbial can has already been kicked so far down the road that it has reached the cliff.

Preserving Social Security

Nearly 65 million Americans currently receive monthly benefits.  Demographic changes are challenging the program’s long-term solvency.  People are living longer, and working age people are having fewer children, meaning there are fewer to contribute payroll taxes that pay current benefits.

AMAC’s Social Security Guarantee is designed to extend the program’s solvency with modest changes, including a gradual increase in full retirement age from 67 to 70 (early retirement remains 62).  In 85 years, the age was changed but once, and by just two years, despite an increase in life expectancy of 20 years since 1935.  Further, the Covid-19 pandemic of 2020 has brought the expected depletion date of the Trust Funds (also called reserves or surpluses) to 2030 from 2034.  Across the board benefit cuts of 23% for all, then, are now less than a decade away.

A majority of retirees rely on Social Security as the largest income source, and for many, it is their only income source.  AMAC believes there is an urgent need to help today’s workers save more for retirement, especially since Social Security replaces barely 40 percent of pre-retirement income.

Modernizing the program – Social Security PLUS

AMAC’s Social Security PLUS plan is in addition to, but not a replacement of, traditional Social Security.  Neither big government nor employer mandate, it is a voluntary program for employees and employers.  The goal is to provide additional retirement funds for all workers with access to the money at age 62, the current early retirement age.

Specifics are these—employees own the funds; no taxation to employee on growth or receipt of funds; no required withdrawals (like Roth IRA); employer contributions are tax deductible; employee contributions are after tax; employer contributions may be stopped or started at any time.

AMAC suggests 20% of funds be invested in guaranteed interest accounts or annuities and 80% in any approved investment (i.e. S&P 500 index).  Investment choices would be similar to IRAs and 401k plans.  Administration costs would be borne by providers offering plans.

A 23-year-old contributing $25/week in the first year and employer contributing $15/week, with both adding 4% annually thereafter, in the 80/20 mix suggested, would accumulate over $1 million by age 65.

While Social Security PLUS is not for current retirees, we believe it critical to successive generations to safeguard their futures.  Who wouldn’t want to see their children and grandchildren postpone a little gratification in their younger years for the promise of a financially secure retirement?

If you believe individuals have a right to their own savings and to benefit from growth over time, please support Social Security PLUS.  Visit


Jeff Szymanski works in political communications for the Association of Mature American Citizens (AMAC), a senior benefits organization with nearly 2.3 million members.  He is a frequent contributor here and of articles to draw attention to Social Security’s ailing financial health.

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