Social Security faces a financial shortfall in the years ahead that requires action by Congress. The combined trust funds for Social Security’s retirement and disability programs are on course to be depleted in 2035; without changes, funding from payroll tax receipts will be sufficient to pay only 80 percent of currently scheduled benefits. That would mean immediate, across-the-board benefit cuts, but the pain would be felt most acutely by today’s younger workers and low-income retirees.
But Democrats are aiming to do more than simply address the solvency issue - they want to expand benefits. Their plans range from the relatively centrist proposal now advancing in the House of Representatives from Rep. John Larson, to more bold proposals from Elizabeth Warren and Bernie Sanders.
On the podcast this week, we break down the proposals, and take a look at prospects for the Larson bill in the House this fall. My guest is Nancy Altman, one of the most knowledgeable people in the United States on Social Security. You may have heard of Nancy’s work as a progressive advocate for Social Security expansion - she heads up Social Security Works, one of the key grassroots group pushing for expansion as part of an overhaul that also would restore 75-year solvency to the program. But Nancy also wrote the book on the history of Social Security and why it should be expanded. Correction, she actually has written three authoritative books on Social Security. Nancy has been involved with Social Security policy since the 1980s, having served as a staffer on the Greenspan Commission, which crafted the last major Social Security reforms.
In this conversation, Nancy and I cover:
The 2035 problem (she doesn’t really see it as a “problem,” tho)
Ways to restore solvency - basically, higher taxes, benefit cuts or a combination of both
Why we both think higher taxes are the way to go
An overview of the plans from Larson, Sanders and Warren - also, where does Joe Biden stand on this issue?
The politics of Social Security reform this fall and in the 2020 presidential election
Read about the three leading Democratic reform proposals here:
Social Security 2100, sponsored by Rep. John Larson in the House of Representatives
Expansion proposals from Sen. Bernie Sanders and Sen. Elizabeth Warren. expansion plan.
Listen to the podcast by clicking on the player icon at the top of this page. The podcast also is available on Apple Podcasts and Stitcher.
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The podcast is part of the subscription RetirementRevised newsletter. Subscribers have access to all the podcasts, plus my series of retirement guides on key challenges in retirement. The series includes topics like Social Security claiming and the transition to Medicare. The series also will include guides to housing strategies for retirement, working longer as a retirement plan and much more. For a sample, check out the recently-published guide to the cost of healthcare in retirement, featuring an interview with retirement educator and actuary Steve Vernon.
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Social Security reform: Exploring the plans