Low birth rate threatens both Social Security and Medicare
The U.S. is in the midst of a baby bust as the birth rate hit a 32-year low in 2018, down 2 percent from the year prior. This could spell trouble for the programs like Social Security and Medicare on which older Americans rely. That is because payroll taxes from workers fund both programs. The Social Security Trustees released their annual report in April showing that the Social Security trust fund will have spent all reserves by 2034. The program will at that time be unable to pay full benefits, meaning all recipients would face an immediate across the board cut. Medicare hits insolvency in 2026. Solvency problems could be even worse than what the experts are forecasting if the downward trends in birth rate and fertility continue. Read the 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 Rep. Larson (D-CT) and merging them with the Association’s own well researched ideas. One component is Social Security PLUS, a new yet voluntary early retirement 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 legislative staffs over the past several years. Read AMAC’s plan here.