Latest News
Experts Disagree on Social Security Insolvency Date - CNBC
On the heels of the official annual report from the Trustees of Social Security, another budget modeling organization did a separate analysis on the program’s financial health. That new analysis suggests that rather than the SS Trust Funds running dry in late 2032, it’s likely that won’t happen until early 2033. But these are merely semantics, as far as most of us are concerned. The fact is, that Social Security reform is now becoming a crucial matter for America’s seniors because, unless Congress alters the program, benefit cuts of about 22% will be inevitable for everyone receiving SS benefits.
In this article by Lorie Konish published at CNBC, the author explains that a separate analysis by the Penn Wharton Budget Model suggests a slightly later crisis date, but that doesn’t mitigate urgency of the need for Congressional action now. Click here to read more.
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.