We all know what has to be done to balance the income and expenses of Social Security.
1. Raise taxes
2. Reduce benefits, especially for people with other retirement income.
3. Raise the retirement age to qualify for full benefits.
ANY plan to fix Social Security will have some combination of these changes to the program.
I predict they will probably do a combination of all 3.
In the future, you'll have to be 70 to collect 100%. You want to collect at 65. Fine. You get 50%. Your choice.
What’s your plan for people who paid into SS their whole life and were responsible about their own saving and investing? They’re SOL?
The full retirement age is currently 67
They MIGHT do those, but they really don't have to.
(1)They could fund the Social Security shortfall with payments out of the general fund. Since Social Security payments out have exceeded receipts for some time, that is no change from what we've already been doing.
(2) Without raising taxes, they could just increase the size of our national debt to raise the money. Since our national debt has been going up anyway for decades, that is ALSO no change from what has already been happening.
They'll do that before they take any action which is too politically unpopular. They may still means test benefits, and they'll use the excuse that it is to stabilize the Social Security System, but the hidden primary motivation will rather be to punish successful people.
“ANY plan to fix Social Security will have some combination of these changes to the program.”
Only if you assume it’s a closed system.
It’s not.
The Fed can print the digits for Congress to “borrow” and never pay back.
Just another legislative “fix” that’s available.