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Will my Grandchildren get Social Security? Yes, but…
Perhaps it goes back to a Pew Research Center survey that asked Millennials whether they believed Social Security would be there to provide them a benefit at retirement, and a majority (51%) said no. Or perhaps it is the yearly Trustees Report stating that by 2034 across the board benefit cuts will have to take place, as Social Security will no longer be able to pay benefits in full. But, and this is the important part, unless Congress eliminates the program altogether by changing the law or it significantly alters its main funding source, Social Security will be there. The program is funded from three sources, primarily the 12.4% payroll tax on earned income up to $128,400, as of 2018. It also earns money from interest income on its asset reserve, and the taxation of Social Security benefits. By 2034, the program’s excess cash will be depleted. Hence no further interest income will be earned from its excess cash. Sean Williams notes the program will be around for the grandkids, but it may not provide the kind of retirement their grandparents received without changes due to factors like increasing life expectancy, declining birth rates, and others. Read more… The Association of Mature American Citizens (AMAC) has developed a bipartisan compromise bill, titled “The Social Security Guarantee Act”. One of its several components is Social Security PLUS, which specifically has the younger generations in mind. This new, yet voluntary early retirement plan would allow all earners to have more income available at retirement. Learn more about AMAC’s Social Security Guarantee here…
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