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Politics and Social Security

by | Sep 6, 2016 | News and Updates

During this time of year, political ads flood the airwaves, with Social Security often a target. The lack of understanding about Social Security allows fear tactics to sway voters. Politicians exploit this fear to appear as problem solvers, though many are hesitant to address the issue head-on.

In 1983, Social Security faced a crisis, prompting Congress to act. They raised the full retirement age gradually from 65 to 67, acknowledging longer life expectancies. Today, turning 66 marks full retirement age, with my own set at 67. The evolving landscape includes more beneficiaries like children, widows, and divorcees, unaccounted for in the program’s initial design.

Looking ahead, history suggests it will take several election cycles before Social Security is tackled seriously. Potential fixes include gradually raising the retirement age to 70, removing the cap on highly compensated employees’ contributions, and introducing a 1% additional tax split between employees and employers. These solutions offer political fodder for both sides.

Despite challenges, Social Security remains a vital safety net for many retirees, often their largest retirement asset. I trust Congress to secure its future. As for specific changes, that’s a topic for another post. For now, let’s disregard the TV ads and enjoy retirement.

 

 

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