The Biggest Problems Facing Social Security - AMAC &

John Csiszar has written five books and thousands of articles about financial services and personal financial planning.  Here he explains in simple terms the structural problems and economic reasons why Social Security is facing insolvency in the near future.  These are the factors he addresses in this piece: Low Interest Rates; Longer Retirements; Too Many Beneficiaries; Not Enough Workers; Wealthier Individuals Live Longer; Federal Reserve Policies; Can’t Grow Our Way Out; Effects of Economic Contraction.

Csiszar even explains the potential trouble for beneficiaries born in 1960 who may seek to start benefits at age 62 in 2022.  Average wages are a calculation used to index people’s benefits for inflation.  They were depressed in 2020 due to pandemic, though less than most experts originally predicted.

He concludes with the political problem, which he dubs Congressional Stalemate.  “Plenty of proposals have been bandied about, from increasing the Social Security retirement age to permanently cutting benefits or increasing the payroll tax.  Yet, as of June. 2021, no major adjustments to Social Security have been enacted.”  Full piece here.

The Association of Mature American Citizens (AMAC) believes Social Security must be preserved and modernized.  This can be achieved with no tax increases by changing cost of living adjustments, the retirement age, and delayed credits.  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 research.  One component is Social Security PLUS, a voluntary plan to allow all earners to have more income 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.


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