Is Social Security Going Bust?
Social Security’s demise is often written about, but the story is not quite as many think it is. True, its financial troubles are real, but perspective is needed. Maurie Backman covers that in this piece, noting that payroll taxes are declining due to lower birthrates. Payroll taxes represent the lion’s share of the revenue stream for Social Security benefits. With benefits now exceeding revenue, a trend that will continue, past surpluses are filling the gap to keep benefits whole. But, surpluses will be exhausted by 2034, and possibly sooner. At that time, benefits will be reduced by over 20% unless Congress steps up to fix the program before then. So, is it going broke? Not entirely, as reduced benefits can always be paid as long as there are workers contributing, But reform is needed to keep Social Security solvent over the long term. Read Backman’s article here.
The Association of Mature American Citizens (AMAC) believes Social Security must be preserved and modernized. This can be achieved with no tax increases by changing cost of living adjustments, the retirement age, and delayed credits. 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 research. One component is Social Security PLUS, a voluntary plan to allow all earners to have more income 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.
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