Social Security Benefits Might Get Cut Early - AMAC & Yahoo Finance
That Social Security benefits will be cut across the board for all recipients in just over a decade is not even news any longer, though lay citizens may not have been paying attention to these warnings that have been coming out yearly for a decade. Vance Cariaga explains the 22-25% cut coming which will occur because all past reserves will have been exhausted by 2033-2034. of course Congress could shore up the system with other changes and/or more targeted reductions for some before then. But a bigger concern for many financial experts is the number of folks taking Social Security at age 62. That’s a permanent, lifetime 30% benefit reduction versus waiting until age 67. Some are grabbing money early thinking it better to get something than nothing. However, the program is headed for insolvency, not bankruptcy. Read Cariaga’s full piece in Yahoo Finance 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.