Skip to comments.Bloomberg unveils plans for Americans’ Social Security, retirement savings
Posted on 02/17/2020 6:41:44 AM PST by Red Badger
Democratic presidential candidate Mike Bloomberg is coming out in favor of boosting Social Security and creating new ways for American workers to save for retirement.
The plans mark the latest addition to the former New York City mayors campaign platform, and puts him in line with other Democratic candidates who have called for shoring up Social Security benefits and the programs long-term solvency.
Bloombergs proposals also aim to help improve retirees lives, from giving low-income workers access to government-provided retirement savings plans to helping to ensure seniors get better access to health care and housing.
Mike Bloomberg released plans to shore up Americans retirement on Sunday, promising to increase Social Security retirement benefits and create a government-backed savings plan for workers at all income levels.
Americans who have worked for decades deserve the opportunity to retire without facing constant financial pressure, and, as president, I will strengthen Social Security to allow seniors to do just that, Bloomberg, who is a contender for the Democratic presidential nomination, said in a statement.
The announcement marks the first time Bloomberg has indicated the direction in which he plans to go with regard to Social Security. Repairing the programs solvency and expanding benefits has become a key part of several presidential candidates plans, including Sens. Bernie Sanders, I-Vt., and Elizabeth Warren, D-Mass., as well as former vice president Joe Biden.
In his announcement, Bloomberg focused on President Donald Trumps record on the issue.
When he was running for office, Donald Trump promised not to touch Social Security, and yet as president hes proposed cuts, Bloomberg said. When Im in the White House, I will keep my word to seniors and to the American people.
Social Security proposals
Bloombergs plan calls for setting a new, higher minimum benefit to prevent low-income seniors from falling below the federal poverty line.
It also calls for improving benefits for those who rely on them. Exactly how much benefits would be increased under Bloombergs plan was not disclosed.
Democratic rivals including Sanders and Warren have backed similar initiatives. Sanders has proposed giving a benefit increase of $1,300 per year to individuals with $16,000 or less in annual income. Warrens plan, meanwhile, calls for raising benefits by $200 per month, or $2,400 per year, for all current and future beneficiaries.
The average retired worker currently receives $1,503 in monthly Social Security benefits, according to the Social Security Administration. Social Security benefits represent about 33% of the income of the elderly, according to the agency.
To pay for benefit increases, most proposals generally call for raising the payroll tax or the wage base. The Social Security tax is currently 6.2%, or 7.65% with Medicare, which is paid by both employees and their employers. Currently, only earnings up to $137,700 are subject to those Social Security levies.
Bloombergs plan does not stipulate whether he would increase those thresholds.
Notably, Bloomberg also wants to change the current measure for Social Securitys annual cost-of-living adjustment to another measure that more closely measures inflation and the higher costs seniors face.
Cost-of-living adjustments are currently based on the Consumer Price Index for Urban Wage Earners and Clerical Workers, or the CPI-W, from the Bureau of Labor Statistics. Some advocates have called for another index, called the CPI-E, a price index specifically for the elderly, to be used instead. That index, however, is still considered experimental.
More from Personal Finance: Where top Democratic presidential candidates stand on Social Security Trumps budget could make it harder to stay on Social Security disability insurance Why Social Security is a personal matter for 2020 presidential candidates
Bloombergs plan also calls for putting Social Security on sound long-term footing. Currently, Social Securitys trust funds are projected to run out in 2035, at which point 80% of promised benefits will be payable, according to the most recent estimates from the Social Security Administration.
Experts generally agree that repairing the program will require tax increases, benefit cuts or a combination of both. Bloombergs plan does not include details on how he would extend the programs solvency. Retirement savings plan
Bloomberg also plans to help prevent Americans from struggling financially in retirement by creating a so-called public-option retirement savings plan.
The plan would work by automating contributions from all workers, while low-income workers would be eligible for a government match on their contributions. The savings would be invested in low-risk funds and could mimic popular retirement savings options such as IRAs or 401(k)s.
In addition, the proposal also calls for supplementing income for low-income individuals who work past retirement age and family caregivers who are out of the work force by expanding the earned income tax credit. Health and housing
Bloombergs platform also includes changes to two other areas health care and housing to help bolster seniors financial well-being.
That includes previously proposed initiatives to address gaps in Medicare and Medicaid coverage, such as dental, hearing and vision care.
Bloomberg also plans to limit out-of-pocket drug costs and provide federal coverage for long-term care costs.
His plans also aim to protect seniors housing by increasing rental assistance, helping to prevent evictions and supporting building modifications so seniors can age in place.
Politicians who voiced their support for Bloombergs announcement include Rep. Ted Deutch, D-Fla.; Coral Springs, Fla., Mayor Scott Brook; and West Palm Beach, Fla., Mayor Keith James.
Based on the new clip of him saying it was necessary to deny seniors healthcare, it appears he plans onsshoring up social security by killing off the most senior recipients
Bloomberg unveils plans for Americans Social Security, retirement savings
after all the lawyer talk Shorty got down to businees saying look all that money isnt yours, it mine, since im ur ruler
Why doesn’t anyone ever mention shoring up social security and medicare by applying the same rules to it for immigrants that they apply to citizens? Namely, you don’t pay into it, you can’t take out of it.
When he confiscates OUR nest eggs to run a corrupt dictatorship, how many of HIS Billion$ go into the common pot? Right. I thought none would.
I wouldn’t trust Mikey Mouse with a plugged nickel.....
He’s an evil, communist tyrant wanting to control every aspect of American life. Mikey Mouse can stick his plan where the sun don’t shine.
There goes the working-class vote.
And as when they implemented 401k plans under Reagan, Democrats will try and remove it as soon as they are back in power.
And thus the arms race on boosting SS payments to buy votes has begun.
My prediction: The earnings cap is history and a Tobin Tax to supplement SS revenues is on the way.
Those are the uneducated idiots who Bloomie is after.
>>The plan would work by automating contributions from all workers
IOW.. It’s a tax.
And thus the arms race on boosting SS payments to buy votes has begun.
Well put. It’s all about buying votes and pandering, but like the arms race it will cost a lot of money. Someone has to pay for it all and we know who that will be.
“The Plan” is always a tax.
“...giving low-income workers access to government-provided retirement savings plans...”
Sure, that’ll work. And WE fund it all.
We already have that. It’s called “FICA”
I don’t believe anything this arrogant, pompous a$$ says.
What’s Mini Big Gulp gonna do - Implement stop and frisk at the Bingo table?
Actually if you are supposed to pay for your own healthcare out of the increase in Social Security because there is no more Medicare it might be worth looking at.
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