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Social Security Insolvency: Will Private Accounts be a Solution? - The Hill; AMAC
The steady countdown to full depletion of Social Security’s trust fund reserves continues despite a growing recognition of just how severe the problem is. And while there’s more and more teeth gnashing about what will happen absent congressional attention, the typical position from popular senior support organizations is that they are “protecting” Social Security. The question, though, is one of specifics. What is being done, and who is doing it?
For those unaware of the insolvency problem, a post earlier today on this site described the problem in general terms and introduced commentary on one solution under consideration. We follow that post with a piece by The Hill contributor Les Rubin offering additional insight into another long-term approach to dealing with the program’s ambiguous future. Rubin offers conjecture on the feasibility of private retirement accounts as a solution. With many retired workers relying on Social Security as a significant portion of their retirement income, and with many Americans facing retirement with Social Security as their only source of income, making common-sense changes to improve financial stability in later years could represent a meaningful solution to the problem. Check out Rubin’s post here…
The privatization issue has garnered significant attention, both pro and con, in recent press releases, and naturally requires additional analysis regarding its place in the broader long-term problem. There are many other potential approaches surfacing as the clock winds down, one of which is the AMAC Social Security Guarantee. AMAC’s plan is a balanced 14-point strategy outline to preserve and modernize the program to meet the demands of 21st-century economics. AMAC’s position is that this can be achieved without payroll tax increases through relatively slight program modifications, including changes to the cost-of-living adjustment (COLA) process and modifications to the formulas for calculating payments to higher-income beneficiaries. Changes to the age for maximizing benefits are included in AMAC’s position, along with (1) an increase in the thresholds where benefits are subject to income tax; (2) indexing of these thresholds annually to account for inflation; (3) improved survivor benefits, (4) eliminating the reduction in benefits for those choosing to work before full retirement age; and (5) improved savings tools for future retirees, including a savings account that builds estate value. AMAC is resolute in its mission to preserve Social Security for current and future generations and has attracted the attention of lawmakers in D.C., meeting with numerous congressional offices and staff over the past decade. To learn more about AMAC’s plans, click here.