A new report from the Conference Board suggests solutions to the insolvency crisis that's looming for the Social Security trust funds.
In a brief titled "Saving Social Security," the board’s policy think tank warned that the federal retirement program's trust funds are on track to run out of money by 2033 unless substantial reforms are implemented.
“With the US national debt ballooning over $34 trillion, annual deficits projected to average $2 trillion for the next 10 years, and debt servicing demanding a growing share of the federal budget, US fiscal policy needs urgent and comprehensive debt reduction and reform. Saving Social Security is an important part of this effort,” said the report from the Conference Board's Committee for Economic Development.
“In 2022, Social Security spent $147 billion more than it brought in, and that gap is expected to widen to $670 billion in 2033,” according to the report. “In total, Social Security is projected to incur cash deficits of $4.5 trillion over the next decade.”
Among several reforms to extend the solvency of Social Security, the CED suggested raising the retirement age to 69, implementing means testing for high-income beneficiaries, and increasing the taxable income cap.
It also recommended removing work disincentives for retirees, diversifying trust fund investments, revisiting the calculation of cost-of-living adjustments, and extending coverage to new state and local workers.
The CED also called on the government to create a bipartisan Congressional Commission on Fiscal Responsibility, which would evaluate the different policy options.
The document details how the Social Security program's costs have surpassed its payroll tax revenues since 2010, leading to a slow depletion of the Old-Age and Survivors Insurance Trust Fund's reserves.
The Social Security Administration – the government agency in charge of running social insurance programs – now forecasts that without reform, US retirees will see their Social Security benefits slashed by 23% once the OASI fund falls off its projected 2033 insolvency cliff.
“If policymakers act now, they have a number of options at their disposal to bolster the program and save it for future generations of American retirees,” the report said.
Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.
From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.
"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.
Chair also praised the passage of stablecoin legislation this week.
Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
