Social Security’s Insolvency: Is it Time to Self-Insure? - The Motley Fool; AMAC

This week’s issue of the 2024 Social Security Trustees Report product with it a mixed message–a slight improvement in the date for total depletion of the program’s financial reserves, along with a reminder that the program remains on a path to a potential 2035 train wreck. The good news/bad news scenarios painted by the 2024 report are still being digested, but the simple fact remains that something needs to be done legislatively–and soon–to ward off a financial catastrophe for seniors.

But what if nothing gets done to correct the problem? That’s the theme of a post by The Motley Fool’s Maurie Backman titled, “Social Security Benefits May Get Cut. What’s Your Game Plan?” Ms. Backman begins her post by dispelling the oft-repeated rumor that Social Security is facing bankruptcy, then explaining fact that the program could reach a point where incoming revenue is insufficient to make scheduled payments. She follows this level-setting with several suggestions future retirees can consider to hopefully achieve some financial cushioning in the event a resolution cannot be reached. Most economists and pundits view reaching this point as unlikely, but it’s still a possibility.

Read Ms. Backman’s post here, but be aware that action in Congress to ward off the insolvency problem is a recurring situation. Each Congressional Session brings new legislative proposals to the process. What’s really needed, of course, is the careful evaluation of all proposals and a bipartisan compromise to fix the system. This is needed quickly–the longer it takes to achieve a resolution, the more traumatic the remedies 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 through slight modifications to cost-of-living adjustments and payments to high-income beneficiaries plus gradually increasing the full (but not early) retirement age.  AMAC supports an increase in the threshold where benefits are taxed and then indexed for inflation and calls for eliminating the reduction in benefits for those choosing to work before full retirement age. Summaries of the AMAC position–the AMAC Social Security Guarantee–can be viewed at

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