On Insolvency: “Take it seriously, but don’t panic” - U.S. News
As we’ve noted repeatedly on this website, Social Security’s impending insolvency is now a mere six years away. This reality is no new revelation, since the problem has been on Congress’s radar since the late 1980s. It’s just that with the most recent annual trust fund report pushing the insolvency date closer, folks are saying, “Hey, wait a minute…isn’t Congress going to take action?”
That’s certainly a reasonable question to ask. In a complex financial system like Social Security, with so many moving parts affecting benefit calculations, revenue streams, and eligibility rules, selecting the most effective approach to resolving the problem is a monumental task. It takes time. Time is running short, and this is a serious concern for many closely watching the drama unfold in Washington. The Senior Citizens League’s executive director, Shannon Benton, commenting in a U.S. News interview, put it this way: “The longer Congress waits, the harder the choices become.”
In her wide-ranging interview, Ms. Benton also discussed the upcoming cost-of-living adjustment (COLA) scheduled for announcement in October, the potential for COLA to continue to disappoint seniors, the proposals available to lawmakers for consideration in developing a solution, and the implications of making a benefit-claiming decision based on insolvency fears. On this latter point, she puts it this way: “Don’t make a permanent retirement decision out of panic. Make it based on your finances, health, work situation and what makes sense for your family.”
Read U.S. News contributor Tim Smart’s synopsis of Ms. Benton’s interview here.