Social Security Isn’t Doomed for Younger Generations
Tyler Cowen writing in Bloomberg dismisses the notion that younger folks will not receive Social Security. Cowen acknowledges the funding shortfall that will occur around 2034 with the program being incapable of paying out full, promised benefits. He cites respected researcher Charles Blahous of the Mercatus Center who notes only 17% of scheduled benefits are currently not financed over the next 75 years. Blahous estimates that gap can be easily covered through a payroll tax increase from 12.4% to 15.1% and notes “today’s younger earners still are slated to receive more than their parents did — just not very much more.” Of course there are other ways to close the gap than tax increases. Cowen cites Dean Baker, a liberal economist who also has studied Social Security. Baker estimates that “retirees 30 to 40 years from now will receive monthly checks that are about 10% higher in real terms than today’s benefits. And keep in mind those are estimates per year.” Cowen states that Millennials and Gen Xers will benefit by being the first generations ever to step into a world “built for the elderly.” Read full article 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 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 well researched ideas. 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 a great many congressional offices and their staffs over the past several years. Read AMAC’s plan here.