Is there a tsunami? And what should we do about it? Published by Jane the Actuary View all posts by Jane the Actuary
8 thoughts on “Forbes Post, “SEC Commissioner Warns: A Retirement Crisis “Tsunami” Is Approaching””
eliminate the earnings cap…problem solved…also, please adjust the amount of income where one’s SS benefits become subject to income tax…that number hasn’t been adjusted for inflation for a quarter of a century!…25 years ago the IRS called that income “substantial”…the fact that they still do is a joke…
No, raising the taxable wage base does not solve Social Security’s actuarial problem unless you raise the taxes on high income earners without also raising their benefits, which would make it even more of a swindle for them. Yes, it would be a good idea to adjust the income where Social Security benefits become taxable because otherwise inflation will amount to an automatic income tax increase, which was one of the main sources of the tax revolt of the late 1970’s. As it is, taxing as much as 85% of one’s Social Security benefit is a gyp, considering that the beneficiary already paid income tax on 50% of his Social Security tax.
…And not a whisper about the benefits of HECM (aka Reverse Mortgage) as a significant piece of the solution puzzle in a modern era of more than $6 trillion in US home equity. That omission stretches your credibility.
Reduce taxes, remove limitations on contribution limits and make it easier to sponsor a plan. Get the government out of this business, at least with all the restrictions. Sadly, there is too much money in this area for the government to leave it alone. Fiduciary standards was a ruse.
There has been bias regarding reverse mortgages (HECM). Unfortunately those criticizing the product do not understand it. Many financial advisers with RICP designations that I speak with agree that the HECM can be a solution to the crisis. Why is this information not being shared with your readers?
Going a little further on the above comment. A reverse mortgage taken out by those that are able to qualify might reduce the stress on the rest of the economy created by the Baby Boomers that are not prepared for the expensive retirement years. Six Trillion in available funds for senior homeowners. Talk about a stimulus, imagine if seniors had those additional funds to spend in the local economies, instead of saving every penny until they pass away like they currently do in some cases. We need to let these seniors know how powerful the reverse mortgage program is. You pay into your home all your life just like you do social security. Why is it that people don’t consider this program a must have. Why not be proud to take your money back in the same way we are about social security? It should be prepared for and looked forward to by all of us approaching 62.
There is no trust fund – try again…