What Social Security Might Look Like When Money Runs Out
Social Security is expected to run out of money in 10-15 years, as in the surpluses will be exhausted. Several options for changes have already been floated to deal with the budget shortfall and they include:
- Raising the payroll tax rate
- Increasing the wages subject to Social Security taxes
- Raising the full retirement age
- Reducing the annual cost-of-living adjustments
- Cutting benefits
Cameron Huddleston of Yahoo Finance explains why the program is in trouble, what the worse case scenario looks like, and what the options and possibilities are and might look like. Full article 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.