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These 3 Things Could Mess Up Your Retirement Plans
Could Social Security cuts ruin your retirement plans? It’s possible. But that’s just one of three things that could wreck havoc. Social Security will reach insolvency by 2034 and thus only be able to pay about 76% of promised benefits. Congress would need to reform the program before that time to bring this 1935 program into the 21st century. The other two issues ate taxes and health care costs. Fidelity estimates that the typical 65-year-old couple retiring today will spend $300,000 on healthcare throughout retirement. Read Maurie Backman’s full piece in The Motley Fool 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.