Social Security Insolvency Barreling Toward us – Now 2030? - Newsmax, Politico, AMAC
For years the Social Security Board of Trustees has warned that 20-25% benefit cuts for all recipients were to start in either 2034 or 2035. The surpluses of program would be exhausted then and thus necessitate such deep cuts. Few politicians though ever paid close attention, as 15 years away seemed an eternity. In fact, even before the pandemic, Social Security was due to pay out more each year than collected from 2020-2034. This year’s Trustees report from April noted the effects of the pandemic are not included, as the data were collected prior. But actuarial experts have been reviewing the huge loss in payroll tax revenue due to high unemployment– rates we’ve not seen since The Great Depression. They now warn the so called “day of reckoning” could be 2030 (others have suggested 2029)! “This is going to get people’s attention,” notes Rep. John Larson (D-CT), chairman of the House Ways and Means Social Security Subcommittee. Read full article in Newsmax here and Politico here.
The Association of Mature American Citizens (AMAC) believes Social Security must be preserved and modernized. This can be achieved by making modest changes in cost of living adjustments and the retirement age, with no additional taxes on workers. AMAC supports a bipartisan compromise, “The Social Security Guarantee Act,” taking 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 new, voluntary plan that would allow all earners to have more income available 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 many congressional offices and staff over the past several years. Read AMAC’s plan here.