Bohemia, NY (PRWEB) December 14, 2011
Theres a realistic way to fix our ailing Social Security system that not only rules out new taxes or benefit cuts for retirees but actually provides for benefit increases, says Dan Weber, founder and president of the Association of Mature American Citizens [AMAC].
Weber outlined a viable, bi-partisan approach to Social Security reform in a recent article in Roll Call that calls for the creation of a supplemental payroll deduction [that] would be not only voluntary but tax-deductible and administered as individual retirement accounts and 401(k)s are now.
Coupled with a provision that ups the eligibility age for benefits, this kind of real reform would quickly ensure the solvency of Social Security for generations to come, he says, noting that there is already bi-partisan support for pushing back the retirement age.
The president has already said that a change in age for receiving benefits is a desirable first step and the House and Senate seem to be on board. Thus, there is encouraging common ground on this issue and a bipartisan agreement in this case might just lead to further agreement on the more complex economic issues.
Under such a plan a 25-year-old individual who contributes only $ 15 a week to an IRA, would get $ 165,407 in additional income by retirement. Increase the amount to $ 45 a week and the windfall would be $ 352,389 upon retirement, according to Weber.
Social Security is no longer the third rail of politics. In fact, more and more senior citizens are demanding radically positive reform. A statistically relevant AMAC poll of 1,253 senior citizens found that nearly 90% of them favored an increase in the eligibility age. Eighty percent of them believe that those paying into the system should have access to a tax deductible Social Security retirement account.
In his article, Weber notes that the Treasury Department currently borrows some $ 46 billion a year from the Social Security fund, replacing the money with IOUs that have no real value. By 2036, he says, a staggering $ 21 trillion will have been drained from the fund, resulting in a collapse.