Delayed Benefits Could Expedite Social Security’s Financial Instability
New research by the money management firm United Income casts much doubt on the assertion that seniors should delay claiming Social Security as long as possible (to age 70) to receive maximum lifetime monthly benefits. While good for individuals, the research suggests that if seniors “optimize” their benefit claiming date, the finances of Social Security overall would likely deteriorate faster. Given that the rate of seniors who claim at 70 has tripled over the last 10 years, it is more than likely that delayed benefit claiming is already pushing Social Security to insolvency faster. This is a different take on the usual longevity argument that states Social Security will be unable to pay full promised benefits starting in 2035, with 20 percents cuts to all occurring then. Read the full summary piece by Brenton Smith here and the full study at this link.
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.