{"id":495407,"date":"2022-09-23T18:44:00","date_gmt":"2022-09-23T15:44:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/conditions-for-social-security-reform-are-perfect-except-for-one-thing\/"},"modified":"2022-09-23T18:44:00","modified_gmt":"2022-09-23T15:44:00","slug":"conditions-for-social-security-reform-are-perfect-except-for-one-thing","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/conditions-for-social-security-reform-are-perfect-except-for-one-thing\/","title":{"rendered":"#: Conditions for Social Security reform are perfect\u2014except for one thing"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a30452e7ece5\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a30452e7ece5\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/conditions-for-social-security-reform-are-perfect-except-for-one-thing\/#%E2%80%9C_Conditions_for_Social_Security_reform_are_perfect%E2%80%94except_for_one_thing%E2%80%9D\" >&#8220;: Conditions for Social Security reform are perfect\u2014except for one thing&#8221;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/conditions-for-social-security-reform-are-perfect-except-for-one-thing\/#%E2%80%98Conditions_are_beyond_ripe_for_change\" >\u2018Conditions are beyond ripe for change\u2019<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/conditions-for-social-security-reform-are-perfect-except-for-one-thing\/#Jessica_Hall\" >Jessica Hall<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9C_Conditions_for_Social_Security_reform_are_perfect%E2%80%94except_for_one_thing%E2%80%9D\"><\/span>&#8220;: Conditions for Social Security reform are perfect\u2014except for one thing&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"%E2%80%98Conditions_are_beyond_ripe_for_change\"><\/span>\n  \u2018Conditions are beyond ripe for change\u2019<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\" data-nosnippet>\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap crawler\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0001209285\" role=\"document\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"\n                inline\" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetArticleReader\n              \n              inline\n  article__inset\n          article__inset--type-InsetArticleReader\n              article__inset--inline\n  \"><\/p>\n<div class=\"media-object-article-reader\">\n<div class=\"audioplayer\" data-sbid=\"WP-MKTW-0001209285\" role=\"region\" aria-label=\"Listen to Article\" tabindex=\"-1\" id=\"articlereader\" data-show-title=\"false\" data-theme=\"wsj-article-reader\" data-show-header=\"false\" data-show-subscribe=\"false\" data-ads-enabled=\"true\" data-save-publication=\"false\">\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       It\u2019s feeling like the \u201980s again. And that could mean an opportunity for <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Social<\/a> Security reform. <\/p>\n<p> High inflation, a turbulent stock market and a recession loomed before Social Security reform h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ened in 1982. Conditions are increasingly similar now, but will reform ever get going?<\/p>\n<div class=\"paywall\">\n       The economic climate today mirrors many conditions of the 1980s when Social Security had its last sweeping changes, experts say, and while that could help to spark a new round of reform, the current political climate may make change difficult any time soon.<\/p>\n<p> The changes that went into effect in 1983 included the taxation of Social Security benefits, the first coverage of federal employees under Social Security and an increase in the retirement age. <\/p>\n<p>\u201cWhat happened when inflation was this high before \u2014 Social Security underwent its most major reform in history,\u201d said Mary Johnson, Medicare and Social Security analyst with the Senior Citizens League, a nonpartisan group representing seniors.<\/p>\n<p>Still, there were some differences in the early 1980s.\u00a0<\/p>\n<p>\u201cThe big difference in 1982 was that Social Security was in crisis and we were weeks away from default. Now, we\u2019re 13 years away,\u201d Johnson said. \u201cAlso, in 1982, we were in a recession. It still remains to be seen if we\u2019ll have a recession now.\u201d<\/p>\n<p>The Social Security Administration has said the funds Social Security uses to pay benefits will be <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.ssa.gov\/oact\/TRSUM\/index.html#:~:text=The%20projected%20reserve%20depletion%20date,than%20in%20last%20year's%20report.&amp;text=Over%20the%2075%2Dyear%20projection,percent%20figure%20projected%20last%20year.\" class=\"icon none\">depleted by 2035<\/a>. That long runway of time could delay what experts say is much-needed Social Security reform.<\/p>\n<p>\u201cWe still have 13 years to go and strong employment numbers currently,\u201d Johnson said. \u201cBut the longer you wait, the bigger the changes that have to be \u2014 the bigger the cuts will be. It\u2019s in everyone\u2019s best interest to get everyone working together now.\u201d<\/p>\n<p>The Committee for a Responsible Federal Budget, a nonprofit, bipartisan public policy organization, predicts the Social Security trust fund could be insolvent even sooner based on factors such as the Cost of Living Allowance (COLA), which will be officially announced in October, being the highest in four decades.<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>The CRFB expects the COLA to be in the range of 8.7% to 9%, which would bring the date of insolvency up by one or two years, according to the group\u2019s president Maya MacGuineas.<\/p>\n<p>While the Social Security Administration forecasts what recipients will qualify for in terms of benefits, that sets up unrealistic expectations because no one knows what cuts may be coming for the program, MacGuineas said.<\/p>\n<p>\u201cEvery year we wait, it gets harder for recipients to plan. The program is not going to look like it promises to,\u201d MacGuineas said. \u201cBy waiting to the last minute, the more likely the changes will be abrupt.\u201d<\/p>\n<p>Without reform, the Social Security system will automatically adjust and benefits would drop by 22% to 25%, Johnson said.<\/p>\n<p>\u201cConditions are beyond ripe for change. The problem is congressional inaction,\u201d said Rep. John Larson, a Democrat from Connecticut. \u201cEveryone is aware of what the problems are. We either have to enhance the program and pay for that, or face cuts to the program. This is not an entitlement. It\u2019s an earned benefit that people paid into.\u201d<\/p>\n<p>According to the Pew Research Center, Democrats and Republicans are united in their skepticism about the future of Social Security. Among those who are still working, identical shares from each party \u2014 42% \u2014 say they don\u2019t expect to receive benefits when they stop working.<\/p>\n<p>Even with doubts about the soundness of the Social Security system, most Americans reject the idea of reducing benefits for future retirees. When asked to think about the long-term future of Social Security, only 25% say some reductions in benefits for future retirees will need to be made, while 74% say benefits should not be reduced in any way, the Pew Research Center found.<\/p>\n<p>Whether it\u2019s possible to get Social Security reform before the eve of 2035, \u201cone always hopes,\u201d Larson said.<\/p>\n<p>Larson\u2019s proposal, Social Security 2100: A Sacred Trust, calls for an increase for all beneficiaries equivalent to an average of 2% of benefits to make up for what he calls \u201cinadequate\u201d COLA increases since the 1980s.\u00a0<\/p>\n<p>He also proposed using a different formula to calculate the COLA to better reflect the costs incurred by seniors, such as healthcare costs. It also calls for a new minimum benefit to be set at 25% above the poverty line and would be tied to wage levels to ensure that the minimum benefit does not fall behind.<\/p>\n<p>Another proposal by Sens. Bernie Sanders (I-Vt.) and Elizabeth Warren (D-Mass.) aims to extend Social Security\u2019s solvency for 75 years by raising taxes on the wealthy, while making benefits more generous.\u00a0<\/p>\n<p>Neither the Larson nor the Sanders-Warren proposals have made much political headway.<\/p>\n<p>Given the threat to Social Security in 2035, the impending changes are expected to be as massive as the changes seen in the 1980s.\u00a0<\/p>\n<p>\u201cWe\u2019re going to see changes on that order of magnitude again,\u201d said Richard Johnson, a senior fellow in the income and benefits policy center at the Urban Institute, where he directs the program on retirement policy.<\/p>\n<p>\u201cWe can always hope for change before 2035, but I\u2019m not counting on it. Historically, Social Security reform comes at the last minute,\u201d Johnson said.<\/p>\n<p>Johnson expects the reform to involve cutting benefits or raising taxes or both.\u00a0<\/p>\n<p>\u201cIf you combine some of the pain with some of the sweeteners, it\u2019s more politically palatable,\u201d Johnson said.<\/p>\n<p>In 2020, the presidential candidates talked about changing Social Security but no movement has happened on any of the proposals.\u00a0<\/p>\n<p>\u201cBeing unable to pay full benefits in 13 years \u2014 that makes it difficult for people to plan. Retirement is something you want to plan for your whole life, especially if there could be a 25% cut to benefits,\u201d Johnson said.<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>    <span>By<\/span><\/p>\n<div class=\"author mobile-scrim hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Jessica Hall\",\"subhead\":\"The Wall Street Journal\",\"list\":[{\"type\":\"link\",\"icon\":\"bio\",\"url\":\"https:\/\/www.marketwatch.com\/topics\/journalists\/jessica-hall\",\"text\":\"Biography\"},{\"type\":\"link\",\"icon\":\"email\",\"url\":\"http:\/\/www.marketwatch.com\/news\/mailto:jessica.hall@marketwatch.com\",\"text\":\"jessica.hall@marketwatch.com\"}]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Jessica_Hall\"><\/span>Jessica Hall<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><ufc-follow-author-widget product=\"marketwatch\" author-id=\"274_MW\" author-name=\"Jessica Hall\" signin-url=\"https:\/\/accounts.marketwatch.com\/login?target=https%3A%2F%2Fwww.marketwatch.com%2Fstory%2Fconditions-for-social-security-reform-are-perfectexcept-for-one-thing-11663947857%3Frss%3D1%26siteid%3Drss\" panda-api=\"https:\/\/follow-api.marketwatch.com\"><\/ufc-follow-author-widget><\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B20C06575-04D4-B545-7127-3C5ED0930BB0%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;: Conditions for Social Security reform are perfect\u2014except for one thing&#8221; \u2018Conditions are beyond ripe for change\u2019 It\u2019s feeling like the \u201980s again. And that could mean an opportunity for Social Security reform. High inflation, a turbulent stock market and a recession loomed before Social Security reform happened in 1982. Conditions are increasingly similar now,&#8230;<\/p>\n","protected":false},"author":1,"featured_media":495408,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.mktw.net\/im-628248\/social","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-495407","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/495407","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=495407"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/495407\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/495408"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=495407"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=495407"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=495407"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}