Social Security Benefits Might Get Cut Early — What Does That Mean? - AMAC & Yahoo Finance
Vance Cariaga addresses the hype that surrounded the release of news that Social Security’s trust funds are due to be depleted one year earlier, now to be 2034. As she notes if Congress fails to address the program’s long-term funding shortfall, the combined trust funds for Social Security will only be able to pay about 75-78% in promised benefits to retirees and disabled beneficiaries. A key point though is Social Security is not going bankrupt, but it is facing insolvency. The two are not the same. The immediate change to current beneficiaries is nothing, but the long term health of the program is in jeopardy, as reserves get depleted more every year until they are exhausted in about a decade. Full piece 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.