An Opportunity for the Next Presidential Administration
Looking ahead to the next Presidential Administration, it’s clear that despite the post-election unknowns, America’s Social Security program occupies a place of prominence on the list of critical issues. Although “officially” targeted for insolvency by 2035, most financial analysts who’ve examined the program in the wake of the COVID-19 pandemic and the ravaging of the U.S. economy this year conclude that the 2035 date is way too optimistic. In fact, some pundits have put forth projections that the program’s trust funds will be exhausted during the latter part of this decade and, absent congressional action to address the problem, the draconian cut in monthly payments to the 65+ million beneficiaries would be felt much earlier. In fact, it would be only a few years away, and the closer we get to that point, the more problematic any “fixes” would become.
In a post today on thehill.com, former New Hampshire governor and three-term New Hampshire senator Judd Gregg offers thoughts on why near-term attention needs to be a priority for the incoming administration. It’s an opportunity, really, to head off a solvency crisis that would severely impact one of America’s most vulnerable population segments–those dependent on Social Security benefits to remain above the poverty thresholds. Gregg’s experience, which includes serving as chairman and ranking member of the Senate Budget Committee, qualifies him to render an assessment of the road ahead, and he sums it up this way: “It is not a complex undertaking. Social Security has very few moving parts compared to something like repairing our healthcare system.” Click here to read Gregg’s article…
The Association of Mature American Citizens (AMAC) could not agree more with Judd Gregg’s assessment of the need for serious, timely action on this impending crisis. Nearly 65 million Americans currently receive monthly benefits, and 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. Long recognizing this problem, AMAC believes that the promise to guarantee Social Security for all Americans must be kept, and has established its Social Security Guarantee legislative framework designed to extend the program’s solvency for generations to come. With modest changes, including a gradual increase in full retirement age from 67 to 70 (early retirement remains 62) and relatively minor changes to the program’s calculation formulas, AMAC’s plan would balance Social Security’s finances without necessitating additional taxes on workers.
Another key component of the AMAC plan is its Social Security PLUS proposal, a new voluntary plan that would allow all earners to have more income available at retirement, something that is especially appealing to younger workers. AMAC is resolute in its mission that Social Security be preserved and modernized and has gotten the attention of lawmakers in DC, meeting with a great many congressional offices and their staffs over the past several years. Learn about AMAC’s Social Security Guarantee here.
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