Here’s the timeline for Social Security benefit cuts
Social Security’s Board of Trustees report has cautioned every year for the past 35 that there would not be enough revenue collected in payroll taxes over the long run (defined as the 75 years subsequent to the release of a report) to cover all projected outlays, including cost-of-living adjustments. This Fox Business article explains some of the crucial dates on the road to Social Security’s financial insolvency. While 2034 is widely noted as the year that all past surpluses, or reserves, will be exhausted, that was pre-pandemic. The current health crisis is expected to move up the across the board benefit cuts of 20-24% that all will endure to as soon as 2029. Full article here.
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.