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One thing is becoming clear about the Social Security crisis: It may fall on the American public to rally for a solution, because politicians have yet to broker a fix to the benefits program, which faces insolvency in a decade.
Tony Vola of Iowa, speaking on Thursday at a bipartisan event hosted by the AARP in Washington, D.C., said his children don’t expect Social Security to be there for them when they retire.
“Do I see a groundswell of anger or activity? No. We need more people to get involved,” Vola said.
U.S. Rep. John Larson, a Democrat from Connecticut, told the audience to rise up and rally politicians to make changes to save Social Security.
“You need to say loud and clear, ‘Fix this,’” Larson said. “You should be on them all the time. Speak out. Scream. Vote.”
Larson has a proposal called the Social Security 2100 Act that calls for taxing workers who earn more than $400,000, adding caregiver credits for people who have to leave the workforce to care for their children or elderly family members, and setting an increased minimum benefit.
Lawmakers have so far failed to solve Social Security’s funding crisis. AARP volunteers and retirees from across the country voiced their frustration in a moderated discussion and in video clips.
“Social Security is a major part of our income. Without Social Security, I’d have to find a job — and who is going to hire an 83-year-old man to do any kind of job?” Alfred Manson of Louisiana said at the event.
Read: 4 major ways the Social Security 2100 Act would change benefits
Cutting Social Security benefits is so controversial that the program is often referred to as the third rail of politics, because it’s seen as lethal to touch it. Congress has never let Social Security miss a payment, but there have been no substantial changes to the program since the 1980s.
“It’s not a political issue. It’s a people issue,” Manson said. “This is a major source of our assistance. Why wait until we’re pushed against a wall to do something?”
According to the latest estimates, the combined trust funds that back Social Security will be depleted in 2034, and benefits would be cut by more than 20% at that time if no changes are made.
“I have been counting on [Social Security] for many years. I waited. I’m taking it at 70. I did my part and I expect Congress to do their part,” Nora Dowd Eisenhower of Philadelphia said in the moderated discussion.
Read: Social Security is now projected to be unable to pay full benefits a year earlier than expected
Mary Johnson, a Social Security and Medicare policy analyst with the Senior Citizens League, said that if history is any guide, no real reform will happen until the insolvency deadline gets closer.
“The last time, we got within weeks of insolvency. It was almost a complete funding crisis,” Johnson said. “Congress will bicker, threaten, do whatever to distract us. That’s the way they do things — right at the moment of going to the wire. The next president will probably be involved in shaping this. People should think about that when they’re going to the polls. Who do they trust with this problem?”
Larson characterized politicians as brushing off the issues by saying Social Security is too complicated and needs further review, but he insisted that the problem actually isn’t that complex.
“Either cut benefits or increase revenues. It all boils down to that,” Larson said.
Sen. Bill Cassidy, a Louisiana Republican, has another proposal to save Social Security by placing $1.5 trillion over five years in an investment fund separate from the Social Security trust fund. The investment would be held in escrow for 70 years. The fund would cover up to 75% of the projected shortfall.
Read: This lawmaker’s ‘big idea’ could fix most — but not all — of the Social Security crisis
Cassidy, who also appeared at the AARP event, agreed that there was no political will at the moment to fix Social Security.
“Under current law, there will be a decrease in benefits. A 24% cut. Doing nothing is endorsing a 24% cut,” Cassidy said. “Now is the absence of presidential leadership and no candidates are addressing it in a meaningful way.”
Cassidy said he’s briefed the White House four times on his idea. “It takes a long time to socialize complicated ideas,” he said, adding that he won’t formally put his idea into bill form yet because “there are dials to turn and we need a president to come up with a solution.”
Cassidy said he expects that Social Security won’t be addressed during this presidential election cycle, but that the topic may be broached by the next Congress.
“A lot of Congress does not have the fierce urgency of now,” Larson said. “Everyone says, ‘We care deeply about Social Security.’ Really? Where’s your bill?”
Manson, the retiree from Louisiana, agreed that people need to speak out about Social Security.
“We used to tell our kids, ‘If you don’t holler, we don’t know you’re hurt.’ Well, it’s time to holler. It’s a crisis,” he said.
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