No matter who is elected president in less than three weeks, Social Security will be one of the largest challenges they'll have to address during their term.
According to a Bankrate article, time is running out for anyone to do anything: "The Social Security Administration (SSA) is projecting that retirees will receive 100 percent of their promised benefits for only 15 more years, after which only 79 percent of those payouts would be recovered. Meanwhile, about 65 million Americans in 2020 will receive payments."
Should Joe Biden be elected, he has some proposed solutions, which were listed in the same article:
- Apply payroll taxes on wages above $400,000.
- Increase special minimum benefits for Americans who've worked for 30 years.
- Americans who have been receiving payments for at least 20 years would see a higher benefit.
- Increase benefits for survivors or widowed spouses.
- Base annual increases off a price index for the elderly.
With the exception of the first one, these "solutions" would require more revenue (or a higher allocation of revenue) from a system that's already a budgetary mess.
Not to mention, Biden's proposal of more payroll taxes on the wealthy could backfire. For example, those facing a higher tax bill could simply find loopholes or move to a country that has lower taxes than the U.S.
Biden's Plan Raises the Some Important Questions
There's no doubt that the "doomsday clock" for Social Security and Medicare is set at "3 minutes to midnight." The trustees have made this point very clear.
There's also no question that Biden views "more government" as a solution to Social Security's problems. So of course his "kitchen sink" package of changes are typically Democratic: More tax and spend, more reliance on a bureaucratic government.
Biden's "package" of policy proposals for Social Security raise the following questions:
- Is the answer to Social Security woes more reliance on the government?
- Is more "tax and spend" going to lead the U.S. into more trouble down the road?
- Does Biden stand any reasonable chance of saving Social Security?
Unfortunately, retirees have to deal with emergencies, increasing healthcare expenses, and inflation that eats up the meager 2021 cost of living adjustment of just 1.3%
So, if "more government" or "more taxes" are the solutions offered by a Biden presidency, those issues also have to be factored in.
But after 2034, it might not matter much – not unless some original ideas come to fruition. Until then, you should consider preparing by taking matters into your own hands.
The Best Answer Is: ‘Take Back Control of Your Retirement’
There's no denying that Social Security is in dire straits. Yet if Joe Biden is elected as the next president of the United States and he rolls out the "solutions" that he's put on the table so far, the solvency of the entitlements program could deescalate even faster.
So now is the time to focus on protecting your retirement savings. Examine your allocations, consider your risk levels, and look at adding precious metals such as gold and silver. They have been proven to act as a hedge against messes like this.
Peter Reagan is a financial market strategist at Birch Gold Group. As the Precious Metal IRA Specialists, Birch Gold helps Americans protect their retirement savings with physical gold and silver. Discover more by clicking here now.
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