Will Social Security be around when you retire? - NewsNation
Andrew Dorn goes through the challenges facing the Social Security program here. He notes scheduled benefits have always been paid in its nearly 90-year history. That would change in about a decade absent reform by Congress, as the funds are just not there for the program to pay 100% of benefits. Dorn lists some solutions but notes those still working can best prepare for a possible cut in benefits by saving more. For example, a mere $25/wk invested at a conservative 5% interest for 40 years grows to about $165,000. Savers who stash $50/wk would have roughly $300,000 after 40 years at 5%. Many investment funds yield more of course. Claiming age also has a big impact on retiree benefits, and he suggests people plan to wait until as late as 70 to start. Full piece here.
As an example of the leading thoughts on reforming Social Security, the Association of Mature American Citizens (AMAC, Inc.) believes Social Security must be preserved and modernized. This can be achieved without tax increases by slight modifications to cost of living adjustments and payments to high income beneficiaries plus gradually increasing the full (but not early) retirement age. AMAC Action, AMAC’s advocacy arm, supports an increase in the threshold where benefits are taxed and then indexing for inflation, and calls for eliminating the reduction in people’s benefits for those choosing to work before full retirement age. AMAC is resolute in its mission that Social Security be preserved for current and successive generations and has gotten the attention of lawmakers in D.C., meeting with many congressional offices and staff over the past decade.