Banking on Social Security alone in retirement? Fuggedaboutit!
Maurie Backman’s piece here notes that seniors who have incomes from several sources in retirement will no doubt be unaffected by the paltry 1.6% cost of living adjustment just announced for 2020. But too many seniors do rely solely on Social Security, even though it replaces just 40% of pre-retirement income. Many may not realize this fact until it’s too late. But equally as bad is the fact that the program has not kept up well with inflation in recent decades. Further, benefits could be cut for all across the board starting in 2034 or 2035 if Congress does not act before then to shore up the program’s long term financing issues. Backman explains how these three facts point to the importance of income diversification. Read full article here.
The Association of Mature American Citizens (AMAC) believes Social Security must be preserved and modernized. This can be achieved by making modest changes in cost of living adjustments and the retirement age, with no additional taxes on workers. AMAC advocates for a bipartisan compromise, “The Social Security Guarantee Act,” taking selected portions of bills introduced by former Rep. Johnson (R-TX) and current Rep. Larson (D-CT) and merging them with the Association’s own well researched ideas. One component is Social Security PLUS, a new, voluntary plan that would allow all earners to have more income available at retirement. This component is intended to appeal especially 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. Read AMAC’s plan here.