WITH A NARROW AND HIGHLY FRACTIOUS REPUBLIcan minority now in control, it is a safe bet the House of Representatives will be the site of loud debates over government spending in the coming months. As part of the fighting over things like raising the debt limit, expect to hear renewed talk about reforming Social Security.
The GOP has made clear that what they mean by reform is cutting benefits. They'll argue that we cannot afford Social Security and that the program is going bankrupt. Both arguments are false. Social Security does face a long-expected shortfall in the years ahead but closing the gap is a manageable task. And we need to do more than simply close the program's funding gap. Millions of Americans are approaching retirement confronting a devastating decline in their standard of living.
The best remedy is to expand Social Security benefits, not cut them. The most important measure of financial readiness to retire is your ability to replace working income after you retire, in other words, your ability to maintain your standard of living. Financial planners say most people will need to replace at least 70 percent of their wage income in retirement.
Anyone who has not been able to save much for retirement will depend solely on Social Security, which typically replaces only about 40 percent of pre-retirement income. Federal Reserve data indicate the median balance in a retirement account in 2019 for a working household nearing retirement (age 55-64) was just $144,000, an amount that will not last very long in retirement. And far too many have not been able to save anything at all.
This story is from the January 27, 2023 edition of Newsweek US.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the January 27, 2023 edition of Newsweek US.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
Is It Time to Leave Syria?
The U.S. is reportedly considering withdrawing from the country, with pressure from Damascus amid deepening unrest in the region. Is this the right move? Two experts weigh in
Chris Perfetti
IF YOU'RE ONE OF THE MILLIONS OF AMERICANS SINGING THE PRAISES of ABC's Abbott Elementary, fear not, they've heard you. \"We love to hear it,\" says Chris Perfetti, who plays Jacob Hill on the Emmy-winning sitcom about teachers at a Philadelphia public school.
Divine Intervention
POPE FRANCIS' PROGRESSIVE REPOSITIONING OF THE CATHOLIC CHURCH HAS CREATED BATTLE LINES BETWEEN ITS 1.3 BILLION FOLLOWERS, NO MORE SO THAN IN THE UNITED STATES
Who Rules Gaza When the Fighting Stops?
With no clear leader coming to the fore, questions remain about how the devastated territory will be managed
No End Game in Sight
Benjamin Netanyahu is risking a pyrrhic victory in Gaza that damages the chances of long-term peace
'We're Living a Nightmare - Day After Day'
Families of three Israeli hostages share their pain as they wait for their loved ones to be released, six months after they were abducted
Gillian Anderson
IF THERE'S ONE THING THAT'S TRUE ABOUT GILLIAN ANDERSON, IT'S THAT she isn't afraid of a challenge.
Alex Edelman
A JEW ACCIDENTALLY STUMBLES UPON A gathering of white nationalists. For most, this would be a cause for concern, but for Alex Edelman it's an opportunity for a hit one-man comedy show.
LEGACY OF DISUPTION
TOM DOLL CHANGED THE WAY SUBARU OPERATES. During a 40-year tenure at the automaker, he worked to develop some of the best-known vehicles and marketing campaigns in the automotive world.
SUSTAINABILITY DISRUPTOR OF THE YEAR
SUSTAINABILITY ISN'T JUST ABOUT BUYING an electric vehicle or driving in a way that saves fuel.