Tap here to turn on desktop notifications to get the news sent straight to you. Without Social Security benefits, more than 40 percent of Americans 65 years and older would live below the federal poverty line. Even more striking is that Social Security is the only source of retirement income for almost a quarter of elderly beneficiaries.
AARP has been fighting for 60 years — and will continue to lead the charge — to keep Social Security viable for current and future generations. When the president proposed turning Social Security into private accounts inAARP mobilized the power of millions of its members to defeat that harmful plan.
Currently, Social Security can pay full benefits for just over 15 years. But if nothing is done to make the program financially sound for the long term, benefits will be cut by about 25 percent inaccording to the latest Social Security Board of Trustees report.
In addition, Social Security must be updated to meet changing realities. Life expectancy is increasing, people are having fewer children and there are more women in the workforce than when the program was created. Policymakers also need to be aware that current benefit levels are modest and that people rely heavily on their Social Security benefits.
In addition, the retirement landscape has changed, with fewer people guaranteed pensions. With modest adjustments, we can better preserve, protect and ensure adequate benefits for both current and future generations.
Increase Social Security taxes. Workers currently pay percent of their earnings into the Social Security system up to $, in Oct 02, · Rumors of the death of Social Security have been widely exaggerated. This year, the system's trustees reported that the fund is solvent until , when it would still be able to pay about Aug 27, · WASHINGTON (AP) — Most Americans say go ahead and raise taxes if it will save Social Security benefits for future generations. And raise the retirement age, if you have to. Both options are preferable to cutting monthly benefits, even for .
Achieve long-term solvency and adequacy. Social Security should be sufficiently financed to ensure solvency for the long term. Any changes must ensure meaningful benefits for future generations.
Social Security should continue to provide a stable foundation for retirement income. It should remain a partnership among individuals, employers and the federal government.
It should also maintain its role in providing protection for workers and families affected by death or disability.
All covered workers should contribute equitably to the program and receive benefits. Ensure protections for those most in need. Reforms should consider the needs of those most reliant on Social Security and those who have difficulty postponing retirement.
Social Security should continue to reward work. An updated Social Security program must address economic and demographic changes to be able to respond to the needs of future beneficiaries and their families. Changes to the program should be implemented gradually and should protect current beneficiaries and near retirees.
Every vote counts, and together, we the people can hold politicians accountable.The last time we had a Social Security funding crisis -- back in -- a Republican president worked with a Republican Senate and a Democratic House to adopt a package that was balanced between benefit reductions and tax increases.
Assuming no future change in the law, this question can be answered directly by focusing on the "solvency" of the Social Security trust funds.
Solvency for the Social Security program is defined as the ability of the trust funds at any point in time to pay the full scheduled benefits in the law on a timely basis.
Increase Social Security taxes. Workers currently pay percent of their earnings into the Social Security system up to $, in Previous generations could rely on company pension plans, Can You Really Rely on Social Security in Retirement? United States;. 5 Ways to Fix Social Security The Step Solution for a Stress-Free Retirement”.
Save for retirement by implementing an investment plan that meets your specific goals.
Social Security needs to be updated for the 21st century so we can keep the promise we’ve made to future generations. Estimates indicate the program will be able to pay full benefits for the next 20 years but only around 75 percent after that.