Social Security Benefits Will Be Less Robust in Future, Even with Reform
Vince Cariaga takes readers through the insolvency issue here, well known by now to most. Reforms tend to include a higher retirement age and/or payroll tax increases to stave off the automatic cuts coming around 2032-33. But that may not be enough. Cariaga quotes Craig Copeland, director of wealth benefits research at the Employee Benefit Research Institute, who states, “What this means for younger U.S. workers is that they need to prepare for the prospect of lower Social Security benefits in retirement. This means you’ll need to build up more retirement savings and/or work longer than initially planned.” Full piece here.
The Association of Mature American Citizens (AMAC) believes Social Security must be preserved and modernized. This can be achieved without tax increases by changing cost of living adjustments, increasing the retirement age, and modest adjustments to the highest income beneficiaries. The AMAC plan also suggests eliminating taxation of benefits, or at least annually adjusting the amount taxed for inflation, and eliminating the reduction of benefits for those who work before full retirement age. 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 a great many congressional offices and their staffs over the past several years.