It’s Time to Revisit Social Security’s Early and Delayed Claiming Formulas - AMAC & Morningstar
Journalist Mark Miller writes in Morningstar that it may be time to revisit the delayed credits and early claiming penalties with Social Security. Both were designed in the 1950s, and as he notes, “the underlying actuarial factors have changed. Interest rates have fallen and life expectancy has risen– the latter, much more so for high earners.” Miller joins a growing chorus that now say the current delayed credits are too generous (8% a year growth from full retirement age to max age 70) and that the reductions for claiming early penalize too much. 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.