Today’s debate day for many Democratic candidates running for president in the 2020 election. Tonight, we were hear all sorts of different ideas and proposals. Just before the debate is scheduled to take place, Senator Elizabeth Warren decided to unveil her new plan to help Americans save money for retirement and social security.
In her own words: “it’s getting harder to save enough for a decent retirement.” She wants to do something about that by allowing a $200 per month increase for every single person either currently receiving Social Security or for future beneficiaries saving for retirement. According to the Massachusetts Democrat, this is the largest and most progressive increase in the program and almost 50 years. She says it’s about time the government gets serious about the depleting program.
She says that the average payment a person receives on Social Security, about $1,354 per month, is small and nowhere near enough. There are currently 64 million people who receive these benefits and many need these payments to survive. By giving a $200 per month bump, you allow them to live a bit more comfortably.
“And here’s the even scarier part: unless we act now, future retirees are going to be in even worse shape than the current ones,” she stressed. This is due to the fact that Social Security is running out of money. People are paying into it for their retirement, but the government uses what workers are currently paying into to subsidize current retirees.
Paying Back Social Security
Sen. Warren says that if she becomes president, shall expand the solvency of Social Security by 20 years and, of course, shall do that by increasing taxes on the wealthiest Americans. According to Mark Zandi, a chief economist with Moody’s Analytics, Warren’s plan would “immediately lift an estimated 4.9 million seniors out of poverty, cutting the senior poverty rate by 68 percent.”
What also wants employers who are already contributing towards their workers Social Security benefits to contribute even more. She wants to bust his number up by nearly 25%. She believes that the top earners can easily afford to boost contributions to workers by this much. Warns goal is to create a much stronger progressive Social Security system that works for the lower-and-middle class retirees.
Something definitely needs to be done as the average lifespan of Americans continues to expand. Nearly 80 million people are estimated to be drawing on Social Security as we continue to live longer. Social Security was implemented when the lifespan was shorter. Now that were living longer, more money is being drawn from the system and is quickly running out of money. It’s unknown of Warren’s plan will ever be voted into law, but either way, someone needs to help fix the problem before it’s too late.
