Social Security’s Future–A Clear and Concise Synopsis - The Motley Fool
Media accounts of Social Security’s long-term viability frequently set forth a dismal picture, often using terms like “bankrupt” that generate either alarm or despair depending on one’s age and proximity to benefit eligibility. Those who follow this subject closely, of course, are aware that despite its projected funding problems, Social Security is not facing termination; rather, absent corrective action by legislators, there is a threat that benefits could be reduced but most remain optimistic that the problem will be addressed in time to ward off a financial catastrophe.
The Motley Fool’s Katie Brockman, in a post on their website, provides a succinct recap of Social Security’s plight as it stands today. Her article presents good news and bad news, with the good news that even if no corrective action is taken, benefits will continue (although at a lower rate). The bad news, she notes, relates to the program’s continuing inability to keep pace with the loss of buying power beneficiaries face as a result of inflation. Her article also discusses ways to lessen dependence on Social Security benefits, either by bolstering savings or delaying benefits as long as age 70 to maximize monthly payouts.
Overall, a good recap of the current situation. Check it out here. Having a good perspective on the reality of Social Security’s future will help you navigate the various media accounts as reform measures are considered in the 118th Congress (and beyond, if necessary). What’s really needed, of course, is careful evaluation of proposals and bipartisan compromise, and this is needed quickly.
The longer it takes to achieve a resolution, the more traumatic the “fixes” will need to be. Considering the future, keep in mind that the 118th Congress, like many of the preceding congressional sessions, continues to see proposals to reform Social Security in the face of the insolvency dilemma. As an example of the leading thoughts on reforming Social Security, the Association of Mature American Citizens (AMAC, Inc.) believes Social Security must be preserved and modernized. This can be achieved without tax increases by slight modifications to cost-of-living adjustments and payments to high-income beneficiaries plus gradually increasing the full (but not early) retirement age. AMAC Action, AMAC’s advocacy arm, supports an increase in the threshold where benefits are taxed and then indexed for inflation, and calls for eliminating the reduction in people’s benefits for those choosing to 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 many congressional offices and staff over the past decade.