Latest News
Discussing Social Security’s Financial Issues - Yahoo! Finance
There is much discussion these days about Social Security: Is it “going broke?” Are my future benefits at risk? Will there be a benefit cut soon? If so, when?
All of these are valid questions which every senior should stay informed about, since a majority of beneficiaries rely heavily on their monthly Social Security payment to make ends meet. This article by Motely Fool’s Maurie Backman posted at Yahoo! Finance answers all those questions clearly and concisely. In a nutshell, Social Security is not “going broke,” but requires reform because it will be facing financial issues soon. Click here to read about Social Security’s financial dilemma.
As an example of leading thinking on reforming Social Security, the Association of Mature American Citizens (AMAC, Inc.) believes Social Security must be preserved and modernized to serve future generations. AMAC’s position is that this can be achieved without payroll tax increases through relatively minor program modifications, including changes to the cost-of-living adjustment (COLA) process and modifications to the formulas for calculating initial benefits for higher-income beneficiaries. Changes to the age for maximizing benefits are included in AMAC’s position, along with (1) an increase in the thresholds where benefits are subject to income tax; (2) indexing of these thresholds annually to account for inflation; (3) changing the taxable maximum formula to address the unintended loss of revenue; (4) improving survivor benefits, (5) eliminating the reduction in benefits for those choosing to work before full retirement age; and (6) improving savings tools for future retirees, including a savings account that builds estate value. AMAC is resolute in its mission that Social Security be preserved for current and successive generations and has gotten the attention of lawmakers in D.C., meeting with many congressional offices and staff over the past decade. See AMAC’s proposal for Social Security reform here.