Should Social Security look more like Australia’s Retirement Plan? - USA Today
There are numerous ideas circulating about reforming Social Security. BlackRock CEO Larry Fink suggests examining how Australia approaches it. Employers contribute 11.5% of each employee’s salary to their “superannuation” account. Employees have the option to contribute. Employees decide how their funds will be invested. At age 60, employees have access to their accounts. In a post on USAToday, Dana George for The Motley Fool explains here…
Beyond fixing the more immediate issues, though, there’s a long-term problem plaguing Social Security that requires serious congressional attention–the program’s looming insolvency projection. As an example of the leading thoughts on reforming Social Security, the Association of Mature American Citizens (AMAC, Inc.) believes Social Security must be preserved and modernized to meet the demands of 21st-century economics. AMAC’s position is that this can be achieved without payroll tax increases via relatively slight program modifications, including cost-of-living adjustment (COLA) process changes and modifications to the formulas for calculation of payments to higher-income beneficiaries. Changes to the age for maximizing benefits are included in AMAC’s position, along with (1) an increase in the thresholds where benefits are subject to income tax; (2) indexing of these thresholds annually to account for inflation; (3) improved survivor benefits, (4) eliminating the reduction in benefits for those choosing to work before full retirement age; and (5) improved savings tools for future retirees, including a savings account that builds estate value. AMAC is resolute in its mission that Social Security be preserved for current and successive generations and has gotten the attention of lawmakers in D.C., meeting with many congressional offices and staff over the past decade.
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