Is Social Security Running Out of Money Soon?
Not exactly is the usual answer as to whether Social Security funds are running dry. Vance Cariaga notes what experts always say, in that as long as some workers are making payroll tax contributions, some benefits can flow out. But the longer Congress waits to reform the program, larger benefit cuts do loom. Doing nothing means a 20% or greater across the board cut come 2035. Congress could restore the financial balance by immediately reducing scheduled benefits by about 20% now to account for the projected shortfall, according to a September report of the Congressional Research Service. The required reduction would gradually go up to 26% by 2096. Another option would be for Congress to raise the Social Security payroll tax rate from its current 12.4% to 15.6% following the 2035 depletion, and then gradually increase it to 16.7% by 2095. Read the full 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.