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There has been a lot of debate regarding how to fix the impending (2032) shortfall in Social Security benefits.
This morning I was reading one of my financial newsletter emails and found this link:
https://www.ssa.gov/OACT/solvency/index.html?utm_source=substack&utm_medium=email
Happy Reading!
Like most everyone else I don’t like the idea of a cut in my benefits but I can live with that knowing the government enacted sensible reforms. The problem is, I am not confident that those are the changes they will enact. Regardless, plan for the worst and hope for the best.
Fixing Social Security is easy with relatively modest changes. I have proposed several combinations on my blog. Go to the site for the Committee for a Responsible Federal Budget. It has a tool to model many changes and combinations.
But now we face another problem. Should current retirees help pay to keep SS solvent and if so, how? Take a look at my take on this here.
I don’t want to see any changes that cost me money! In reality, however, everyone needs to be part of the solution, even if it does end up costing me.
We already had a cut in benefits with the reforms enacted in 1983 with the requirement to work two more years before receiving full retirement benefits. I believe this resulted in a effective 16% cut in benefits.