Nov 17, 2021
The Social Security 2100 Act was recently introduced by the Social Security Subcommittee of the House Ways and Means Committee. The reinstatement follows the Social Security Administration's latest forecasts that the trust funds will deplete in 13 years. In this episode, Grant dives into the status of the Social Security Trust fund, some potential solutions to buffer its reserves, and his overall thoughts on the proposed bill.
[04:35] Concept of Social Security Trust Fund – Grant explains the whole idea behind the social security trust fund and how it has evolved over the decades.
[06:10] Time to Revise – Why this is the time to revise rules and regulations related to social security.
[09:54] Running out of Money – Grant shares his take on the depleting reserve in the social security trust fund.
[14:26] Raise the Retirement age – Though raising the retirement age is an option for buffering the reserve on the trust fund, Grant explains why it may not be as easy as it sounds.
[15:06] Increase Taxes – Grant identifies a tax increase as the easiest option politically, and explains how this solution will contribute to the elimination of wealth inequality in the country.
[17:30] Adjust the Benefits – How adjusting the amount going out of the fund is another option to prolong the reserve.
[18:18] Social Security 2100 act – Grant dives deep into the provisions of the proposed act and shares his thoughts.
[23:11] Investing in US Government Bonds – Though there is added risk, Grant explains how investing the excess of the social security trust fund in US government bonds will help to grow the pool of assets a little bit faster.
Resources
Social Security Board of Trustees: Combined Trust Funds Projected Depletion One Year Sooner Than Last Year: ssa.gov/news/press/releases/2021/#8-2021-2
Congress has a new plan to fix Social Security. How it would change benefits: cnbc.com/2021/10/26/social-security-what-a-new-plan-in-congress-would-mean-for-benefits.html