Why You May Wind Up Relying More on Social Security in Retirement
Katie Brockman cites a recent report from the Transamerica Center for Retirement Studies showing that U.S. workers as a whole have saved just $50,000 for retirement. Among baby boomers, who are in the midst of retiring, the median worker only has about $144,000 stashed away. This is troubling, as that amount would be gone in a few years. Social Security replaces only 40 percent of pre-retirement income, yet it appears many will be relying on that monthly benefit as a primary, even only, source of income after a time. Brockman explains the program’s ill financial health and how to prepare for a life of reduced Social Security benefits, which could very well be the new normal in less than a decade. Full piece here.
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 current Rep. Larson (D-CT) and merging them with the Association’s own well researched ideas. One component is Social Security PLUS, a new, voluntary 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 staffs over the past several years. Read AMAC’s plan here.