Save Social Security Now
The AMAC Solution to the Social Security Problem
“We need to Save Social Security, and we need to save it now”
Dan Weber, AMAC President and Founder
We are in trouble!
In 2010 the Social Security Administration paid out 49 billion dollars more than it took in. If this rate of deficit continues, benefits will be cut by 25% for the next generation, and by 2036 Social Security will be 6 trillion dollars in debt. The numbers are staggering and the outlook for future generations is bleak. If we hope to keep the Social Security program solvent for the next 75 years the problem must be addressed now. AMAC’s founder, Daniel Weber, has proposed a simple solution for rescuing our Social Security system that is gaining bi-partisan support and has a real chance of success if we all come together in this effort. This simple solution combines earlier proposals from several Senators with the addition of an optional IRA.
Why Is Social Security In Trouble?
There are two problems that threaten the system. People are living much longer and we have fewer workers putting money into the system. These combined factors have put a tremendous amount of pressure on the financial stability of Social Security.
Consider the following:
- 1950 – 16 workers were paying into the system for every 1 collecting.
- 2011 – Only 3 workers are paying in for every 1 collecting.
- 1950 – Life Expectancy was 65.
- 2011 – We are living much longer. We need more money to pay for those extra years.
- There is NO cash in the Social Security Trust Fund. SSI Tax Revenue goes to the US Treasury. The Treasury then pays the Retiree Benefits.
- The only assets in the Trust Fund are special issue Treasury Bonds… IOU’s (which must pay interest).
“IOU’s are claims against the Treasury with no real assets behind them. They are redeemed by: borrowing more money, raising taxes or reducing benefits.”
From a report by the Office of Management and Budget issued in 1999 during the Clinton Administration
The fact is that Social Security is not secure until 2036, and Social Security (as we know it) will not be there for our children. It has become increasingly clear that Social “Security” does not provide enough money for a secure retirement.
- Average person on Social Security receives $13,000 per year.
- For most, this is the largest part of their retirement income.
- For many, this is the only source of retirement income.
AMAC members speak out.
AMAC has been active in meeting with government officials to discuss options for saving Social Security and we conducted a nationwide survey of our membership to help guide us in our recommendations. We asked you what we should fight for on Capitol Hill.
- Raise Taxes?
- Lower Benefits?
- Adjust the age to receive benefits and add a new Social Security Early Retirement Account?
Overwhelmingly you said adjust the age to receive benefits and add the Social Security Early Retirement Account!!
- This is the Simple Solution.
- It is painless.
- It will allow workers to have MORE money!
AMAC is listening to what you said and we have formulated a practical non-partisan solution to save Social Security now.
Key Provisions of the AMAC Plan
The AMAC Social Security Solution is not intended to – nor will it – replace or privatize our basic Social Security.
- Keep Basic Social Security
- Same basic benefits, same retirement formulas used, same tax rates
- Guaranteed minimum 1.65% COLA for lower income beneficiaries
- Maximum COLA of 1.65% for higher income beneficiaries (minimum increase could be 0%)
- Maximum COLA of 3% for lower income beneficiaries
Why use 1.65% for COLA? To assure that lower wage earners are protected from financial harm, there is a guaranteed minimum increase each year regardless of COLA. Note: in 2009 and 2010 there was no Social Security increase even though gas and food prices rose. Under this plan, lower income retirees will always have an increase.
- Set back of three years for new retirees – affects those age 58 and younger
- Early retirement changes from age 62 to 65- phased in over 12 years (someone age 58 would start collecting at age 62 plus 3 months, age 57 collects at 62 plus 6 months, etc.)
- Full benefits changes from age 66 to age 69- phased in over 12 years at 3 month increments
- Early Retirement Account added as an additional voluntary benefit
- Allows workers to retire at age 62
- Provides additional funds for retirement for all workers
- Payroll deduction
- Tax deductible
- Minimum contribution $5 per week
- Maximum contribution $100 per week
- Owned by individual, portable
- No access to money until 62 except death/disability
- 50% must be invested in a guaranteed interest vehicle
Projected Savings Available
Based on investments with average returns, a 25 year old worker putting in only $15 per week*, would have $165,407 at age 62.
If the worker contributed $45 per week*, using the same rate of return, would have accumulated $352,389 by age 62. *Assuming an employer contribution of $50 per month.
The Early Retirement Account combined with a setback in age will keep Social Security solvent for 75 years and allow workers to accumulate a significant amount of money for their retirement.
YOU can make a difference! We are calling on all AMAC members to take action NOW!
Some people say we have a do nothing Congress and you can’t get both political parties to agree on anything. AMAC doesn’t believe that for a minute. We just need to help them get going by giving a friendly but firm push. Here is a simple Action Plan that takes only a few minutes of your time but if we all do it together we can Save Social Security Now.
- Call your Congressman/Senators at their local office and their Washington office. Contact your elected officials
- Tell them to Save Social Security Now by supporting the AMAC Proposal
- Send AMAC your comments below or email to email@example.com
- Help AMAC by joining us!
Remind your representatives that what we need isn’t a Republican or Democratic solution. What we need is an American solution. We owe it to our children and grandchildren to preserve Social Security so it will be there for them in the future.