Social Security is in Desperate Need of Reform
(Washington D.C.) – A recent report by the Heritage Foundation explains how Social Security’s Old-Age and Survivors Insurance (OASI) program will be insolvent by 2035. This, following last month’s annual report from the trustees who oversee the program, which acknowledged the need for a reform on Social Security, after its fifth consecutive year running on cash-flow deficit. The Foundation’s report suggests Congress should avoid indiscriminate benefit cuts by adopting reforms like: fixing Social Security’s cost-of-living adjustment, gradually increasing the early and full retirement ages, phasing out benefits for retirees with high levels of non–Social Security income, and implementing a flat benefit structure.
Daniel Garza, Executive Director of The LIBRE Initiative, released the following statement:
“If we expect Social Security to work for the people who are currently contributing to it, reform is absolutely necessary. Keeping the programs as they are places an unfair burden on the middle class and future generations, hindering them from adding to their savings and forcing contributions into a soon-to-be insolvent program.
There is such a large gap between the funds currently coming in to the system and spending that a combination of benefit reductions and private retirement accounts will be necessary for beneficiaries to make ends meet. There’s no way current contributors will be able to do that under current policies. Lawmakers need to reform Social Security so that more Americans are able to grow their savings in private retirement accounts and won’t have to depend solely on government. It would be fiscally irresponsible to wait for a crisis to take action — change needs to happen now.”