January 5, 2014
What is the Future of Social Security?
Social Security is NOT going bankrupt. Even if our totally dysfunctional Congress refuses to make some constructive changes to ensure that future payments to retirees continue at the current rate, Social Security will still pay benefits! Don’t believe the doomsayers and fear mongers. “The full retirement age, on which Social Security benefits are based, was raised from 65 to 66 for most people today and will go up to 67 for those born after 1959. A proposal backed by major business leaders from The Business Roundtable is being debated would push the age to 70.” According to Michael Kitces, a leader in the financial services industry, “Social Security is not going broke and retirees or near retirees should not make decisions based on that flawed assumption.” “Even if we do nothing and Social Security goes off a cliff in 20 years, benefits will only be cut by 25 percent,” says Kitces. “CEOs pushing for raising the retirement age and other changes that would cut benefits do not have to rely on Social Security for their retirement.” “The loudest calls for cutting grandma’s benefits are coming from CEOs who will never have to worry about their own retirement security,” says Sarah Anderson, global economy director of the Institute for Policy Studies. “An alternative to raising the retirement age could be to remove or raise the income limit on which Social Security taxes are imposed, which would bring more money into the fund and would make higher income individuals pay more. Currently, the first $113,700 in income is subject to Social Security tax.” Read more at: http://www.fa-mag.com/news/push-is-on-to-increase-social-security-retirement-age-16480.html?section=43
Posted by Financial Planning For Women at 1/05/2014