Better to plan for Social Security’s 2034 crisis now
The year 2034 is reported in any article explaining the financial problems facing Social Security. That is when benefit payments will be cut automatically by about 21% unless Congress passes reform before then. The amount sent to beneficiaries in 2018 exceeded revenue from contributors of payroll taxes, and that will continue until 2034. Surpluses are allowing benefits to be paid in full in the mean time. As Alyssa Pry sees it, far too many Americans are complacent and entirely overdependent on Social Security. As she notes, the program was meant to eliminate abject poverty. It has done that, but too many Americans lean on it as their retirement program. With Social Security monthly checks replacing only 40 percent of pre-retirement income, a comprehensive retirement program it is absolutely not. Read the full piece here.
The Association of Mature American Citizens (AMAC) has a different approach, making modest changes in cost of living adjustments and the retirement age, without the need for any tax increases 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 Rep. Larson (D-CT) and merging them with the Association’s own well researched ideas. One of its several components is Social Security PLUS, a new yet voluntary early retirement 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 legislative staffs over the past several years. Read AMAC’s plan here.
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