“Social Security’s in trouble; we are in trouble” - GoBankingRates
It’s pretty well known that Social Security’s Trust Fund reserves are predicted to run dry in about 2033, necessitating an across the board benefit cut of over 20%. “Across the board” means cuts for everyone, an ominous scenario which should frighten all American seniors as well as those approaching senior-citizenship, because almost everyone will rely on Social Security as a major source of retirement income. Even America’s younger generations are uncertain whether Social Security will be there when it’s their turn to retire.
Suze Orman is a well-known and respected pundit who writes frequently about financial matters and who often offers insights about Social Security, and its future. In this GoBankingRates article by David Nadelle, Ms. Orman’s predictions about Social Security are highlighted, including her thoughts on what changes are on the horizon to restore the program to solvency. Among the changes predicted are increasing the full retirement age and potential increases in Social Security payroll taxes. Click here to read more.
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 indexing 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.