Should We Be Worried About Social Security?
Maurie Backman takes on “the sky is falling” which runs rampant in the literature regarding Social Security’s long term financial health. Backman admits, “Things aren’t looking great, but all isn’t lost.” Benefit payments now exceed incoming revenue, a trend that will occur for another decade. When the past surpluses are fully expended around 2033-34, benefit cuts will occur automatically for all around 23%. The program will then be insolvent, as in unable to pay full promised obligations, though it will not be bankrupt, as there will always be some revenue coming in from workers. Of course, Congress is likely to step in with some reform before cuts take effect. Backman’s main advice to those not yet collecting benefits– save more now! 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.