What deficits from 2020-2034 mean for Social Security
It was to occur this year, but the strong U.S. economy has given the Social Security program one additional year before benefits paid out exceed income, derived from payroll taxes on workers as well as interest and income tax on higher income beneficiaries. In 2020, deficits will occur, the first since 1982. Social Security reserves (surpluses) will cushion the blow so that no one’s benefits will be cut. But in 2034 or 2035, that surpluses will be exhausted. The Merriam-Webster definitions of insolvency are 1) the inability to pay benefits when they are due; and 2) having liabilities that exceed the assets available to pay them. Social Security is insolvent based on the latter and shortly will be based on the former. Read full piece here that explains what across the board cuts would occur if no reforms are passed before 2034.
The Association of Mature American Citizens (AMAC) believes Social Security must be preserved and modernized. This can be achieved by making modest changes in cost of living adjustments and the retirement age, with no additional taxes on workers. AMAC advocates for a bipartisan compromise, “The Social Security Guarantee Act,” taking selected portions of bills introduced by former Rep. Johnson (R-TX) and Rep. Larson (D-CT) and merging them with the Association’s own well researched ideas. One component is Social Security PLUS, a new yet voluntary early retirement plan that would allow all earners to have more income available 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 legislative staffs over the past several years. Read AMAC’s plan here.