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Will Changes to Social Security Result in Retirement Security?
12/15/2016 Social Security Helen J
keywords: Congress Insurance Legislation Retirement

Social Security is a growing concern for many Americans and families due to a lack of long-term sustainability. In an effort to improve sustainability and reduce the risk of the fund running out of money for future generations, a bill was assigned to the Congressional Committee. H.R. 6489 strives to maintain Social Security for future generations and improve retirement security.

What is H.R.6489?

Congressman Sam Johnson from Texas proposed the Social Security Reform Act of 2016, or H.R. 6489, in an effort to improve and alter the current Social Security system for better long-term sustainability and growth. His proposed bill focuses on updating and modernizing Social Security by addressing specific problems with the current benefits program.

The bill suggests an update to the retirement age to reflect the modern advances in medical science resulting in a longer life expectancy. Furthermore, it recommends increasing the benefit for lower income Americans while slowing the growth of benefits in high income Americans. The bill also places an emphasis on benefiting individuals in need by adjusting calculations for a surviving spouse or children of a high-income family.

Will It Help Or Does It Need Improvement?

The changes in Social Security proposed by H.R. 6489 may offer positive changes to sustainability, but it may also cause challenges for some families and individuals in specific circumstances. A key concern about the possible challenges associated with the bill relates to the impact on older individuals or those with disabilities.

Taxes on older individuals or those with disabilities who use certain forms of insurance may need adjustments to improve Social Security with H.R. 6489. The bill does not offer any insights into the taxation of certain insurance provided to assist with disabilities and old age or survivors. Essentially, it needs a few adjustments to improve sustainability when compared to the current suggestions and calculations set in the bill. 

Modernizing Social Security improves long-term retirement security, but it also needs some improvement to address the problems with the current fund and system. Adjusting the bill in relation to certain forms of insurance and the impact of the suggested changes on Old Age and Survivor Insurance or Disability Insurance further improve the possibility of long-term sustainability.

Sam Johnson's bill to update Social Security has a focus on changing the calculations of Social Security benefits for greater flexibility and addressing the risks to those in need. The challenge is ensuring that the bill remains sustainable for retirement security and a few adjustments or provisions may be necessary to ensure that future generations continue to receive Social Security in retirement.

Source: Helen J

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