What can you assume about Social Security in your retirement financial

planning?
The short answer is expect the best, plan for the worst. An Ohio insurance agent,
specifically, an Ohio independent insurance broker, can help you plan for a secure future.
Studies and surveys have consistently shown that the younger the respondent, the more
skeptical and negative the attitude towards Social Security. The closer to retirement people get,
the more confidence they have in the program.
Inside the US Senate Finance committee is a little known group called the Subcommittee on
Social Security, Pensions, and Family Policy. This is where reform and new ideas often first
come to light. The current membership of this committee is;
Sherrod Brown OH D, John D Rockefellor IV WV D, Charles Schumer NY D, Bill Nelson FL D,
Ben Cardin MD D.
Mike Crapo ID R, John Isakson GA R, Rob Portman OH R, Pat Toomey PA R
Social Security has two trust funds that pay benefits. The Old Age and Survivors Insurance
Program and the Disability Insurance Program. The latter is in serious trouble right now and it
looks like nothing will be done until the crisis arrives. The former is solvent for a few more years
but a crisis is looming. Nearly 20% of the population will be of retirement age by 2030,
compared with 12.4% in 2000.
Here are some of the ideas recently floated;
Have intermittent high wage workers are treated the same as steady low wage workers. A
recent high wage immigrant or high wage person that is often in a government pension plan
and out of Social Security can get a higher payout than a steady low wage earner.
Move back the eligibility from 62 to 63 or 64 so there is a constant three year gap for younger
peoples full retirement, as it moves past their 65
th
birthday.
Change the CPI calculation from the Consumer price index to a price index that the elderly
typically pay. Call it the CPI-E. Liberal senators Brown and Harkin proposed this. It is almost
certain to raise payouts.
Adjust the spouse and survivor benefits, the low wage spouse of a high wage earner can get a
higher payout based on the spouses payout than on his or her own work history. Again, some
liberal senators think this is unfair.
Pay Social Security to unpaid caregivers who have had to give up a job to provide care. The
guise for this is that it will save Medicare and Medicaid money in a reduction of Long Term Care
costs. I know the Medicare program fairly well and I fail to see much savings from Medicare. Its
an idea sure to cost Social Security a lot and save Medicaid a little.
In planning a secure retirement, consider a fixed annuity. An Ohio independent insurance
agent, such as myself, can carefully go over your goals and options.
Dan Taylor