AMAC Social Security Guarantee Undergoes 2026 Refresh - AMAC
Following last month’s release of the 2026 Social Security Trustees Report, the Association of Mature American Citizens (AMAC) updated its Social Security Guarantee (SSG), a 15-point package of suggested options to address Social Security’s impending insolvency. The updated version references the Trustees’ updated assumptions on key parameters and financial projections, and expands the “menu of options” for consideration presented in the proposal. References to the Social Security Actuary’s pre-scored proposals have also been updated to reflect the impact of moving closer to the trust fund’s point of depletion, as well as the SSG’s estimated impact on the long-term unfunded shortfall.
Social Security’s establishment over nine decades ago followed the Great Depression and, as such, had a twofold purpose: to provide immediate assistance to destitute families in the wake of devastating financial losses in their retirement savings, and to create a long-term, contributory, work-based insurance system designed to prevent future poverty. The short-term purpose involved federal grants to states to support the needy, while the long-term purpose sought to create a social insurance program, financed through payroll tax contributions that would help prevent old-age poverty among the most vulnerable.
In 2026, we’re grappling with a steadily evolving financial catastrophe that threatens to undermine Social Security’s long-term goal. Current projections indicate that within the next six years, Social Security’s Old-Age and Survivors Insurance (OASI) trust fund reserves will be fully depleted, forcing an across-the-board benefit reduction that would push millions of seniors below federal poverty guidelines. This is, of course, not a new revelation, since warnings have been issued by the Social Security trustees for decades, and since the program’s primary revenue source–the payroll tax–has fallen short of benefit outlays since 2010.
The problem is well known, but what’s the solution?
Hundreds of proposals to prevent Social Security trust fund insolvency have been reviewed, each with trade-offs. A coordinated reform package is needed to resolve the immediate shortfall and sustain the program for future generations. Though difficult, solutions are emerging.
One such proposal is the Association of Mature American Citizens’ Social Security Guarantee (SSG)[1], a 15-point plan based on three prime directives:
- Guarantee an annual increase in benefits for all, with emphasis on those with lower earnings, to ensure the program stays true to its mission: keeping seniors out of poverty.
- Guarantee achieving solvency and ensure benefits continue without automatic cuts.
- Guarantee all earners the opportunity to create more income available at retirement through work and improved retirement savings programs.
The complete Social Security Guarantee (SSG) is available for review on the AMAC.us website, and has been presented to numerous congressional offices for consideration and to Social Security Administration officials for review. The attachment outlines the key program adjustments advanced by AMAC’s SSG.
But how does the SSG align with Social Security’s long-term premise from nine decades ago?
AMAC SSG and old-age poverty
Within the SSG’s details, there are several key recommendations that would work in this direction. First, the SSG proposes a change to the annual cost-of-living adjustment (COLA) process that would redistribute annual COLA dollars to award a higher benefit increase to those with monthly benefits below the average. For seniors remaining in or reentering the workforce, the SSG recommends eliminating the “Retirement Earnings Test” to enable those who’ve claimed benefits before their full retirement age to either earn more or save more. The SSG also includes recommendations to improve survivor benefits for lower-income households and, for those years away from benefit eligibility, recommends enhanced savings opportunities to build wealth.
The SSG addresses the $30 trillion 75-year shortfall by curtailing benefits for some future retirees, but these changes are targeted primarily at higher earners and include provisions to shield lower earners from the impact. The SSG recommends a change to the normal retirement age, a recognition of the demographic changes that have evolved since the program was established in the 1930s. Also, the SSG recommends no increase in the payroll tax, a provision that would benefit low-wage earners proportionally.
Overall, the SSG would avoid the need to cut benefits, which, as noted earlier, would push millions of vulnerable seniors further into poverty. Several of the individual recommendations would also serve to counter the effects of income inequality and its impact on Social Security’s progressive intent.
Key recommendations from “menu of options”
Gradually adjusting the normal retirement age (but not early retirement age) by three years, from age 67 to age 70, consistent with increasing longevity and indexing the normal retirement age to life expectancy
Adjusting the benefit formula for the highest 50% of earners so that more income is captured at the secondary bend points, consistent with the program’s progressive structure (progressive price indexing)
Increasing the taxable maximum to address the “income dispersion” issue
Changing the cost-of-living adjustment (COLA) calculation from a straight percentage for all to a same dollar amount for all using the Chained CPI index on the average benefit, and include a 1% floor for the annual adjustment
Increasing the work history calculation by three years from 35 to 38, restricted based on replacement rates
Eliminating the earnings test on those who work before full retirement age
Eliminating tax on Social Security benefits or indexing the amount where income tax is due on benefits
Either eliminating or at least indexing the amount where income tax is due on benefits
Enhancing surviving spousal benefits
Improving supplemental retirement savings opportunities:
- Further expansion of SECURE 2.0 (portability)
- Adding voluntary retirement savings/investment (i.e., Retirement Savings Account/Social Security Plus)
[1] See https://amac.us/social-security-guarantee