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Don’t Obsess over Social Security! - Motley Fool
At least one pundit who regularly watches what’s happening with the nation’s most important retirement program isn’t personally obsessing over Social Security’s looming financial issue. The issue at hand is a fact which has been reported by the Trustees of Social Security – that the reserves in the Social Security Trust Fund will be fully depleted in about the year 2033. That is, unless Congress acts soon to avert the across-the-board cut in everyone’s SS benefit which will occur if the reserves are depleted. Of course, this isn’t new news, because the Trustees have been warning Congress for decades that benefits will be cut in the mid-2030s unless Congress enacts program reform. Congress, however, has chosen to eschew enacting legislation to correct the problem and, according to this article by Motley Fool’s Maurie Backman, will likely continue to do so until the last possible minute! But rather than obsess over this dilemma, the article suggests taking early action (e.g., now) to offset any potential cut in SS benefits. And that means diligently saving, and regularly assessing your retirement portfolio, as well as staying current on your strategy for eventually claiming your Social Security benefits. Click here to read this Motley Fool article.
As the article opines, Congress is unlikely to allow a cut in Social Security benefits, but reform must happen soon. As an example of the leading thoughts on reforming Social Security, the Association of Mature American Citizens (AMAC, Inc.) believes Social Security must be preserved and modernized to meet the demands of 21st-century economics. AMAC’s position is that this can be achieved without payroll tax increases via relatively slight program modifications, including cost-of-living adjustment (COLA) process changes and modifications to the formulas for calculation of payments to 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) improved survivor benefits, (4) eliminating the reduction in benefits for those choosing to work before full retirement age; and (5) improved 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.