Understanding the Proposed Social Security Expansion Act, Ep #138

<p>The Social Security Expansion Act is being introduced to congress, sponsored by Bernie Sanders, with the “goal” of increasing the solvency of the Social Security fund. Sadly, by 2035, Social Security benefits will have to be reduced by 25% if nothing is done. Senator Elizabeth Warren states that the Social Security trust fund would remain solvent until 2096 if these changes are put into place.</p> <p>But a lot of the proposed changes in the bill are controversial, to say the least—including how they propose we increase payments into the fund. I’ll cover four of the main goals of this bill in this episode of Retirement Made Easy and share my thoughts on each one. Don’t miss it!</p> <h2>You will want to hear this episode if you are interested in...</h2> <ul> <li>[0:53] A big thank you to my listeners</li> <li>[1:49] Why retirement planning HAS to be customized</li> <li>[5:37] The Social Security Expansion Act</li> <li>[7:50] Goal #1: To increase the benefits for all recipients </li> <li>[9:23] Goal #2: Change the cost-of-living adjustment calculation </li> <li>[10:28] Goal #3: Making high-income earners pay more</li> <li>[12:41] Goal #4: Increasing the Net Investment Income Tax </li> <li>[13:50] My thoughts on the proposed bill</li> </ul> <h2>Goal #1: To increase the benefits for all recipients</h2> <p>The bill starts with a fact sheet, which includes these sad facts:</p> <ul> <li>One in seven seniors relies on Social Security for more than 90% of their income</li> <li>Half of Americans 55 and older have <em>nothing</em> saved for retirement</li> <li>The average Social Security benefit is $1,688 per month</li> </ul> <p>Many seniors are struggling, which is why they’re trying to overhaul social security. That’s why their first proposal is to increase the benefit for all Social Security recipients by $200 per month (which would apply to everyone, even those on Social Security who aren’t seniors). </p> <h2>Goal #2: Change the cost-of-living adjustment calculation </h2> <p>The bill also proposes changing how the cos