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AARP Drops Opposition to Social Security Cuts

Having just passed the thirty mark a short time ago, I usually don’t follow too much about that end of retirement on Bargaineering. I try to keep up to date on it, since I’d like to know how likely it is I’ll be collecting Social Security in thirty years, and so this latest news that the AARP is dropping its opposition to Social Security cuts [3] is pretty big news. As we all know, lobbying (and money in general) equals influence in Washington and this opens the door for a restructuring of Social Security. A restructuring that we probably need pretty badly.

What’s wrong with Social Security?

Social Security, which was created in 1935, is facing a demographic challenge as the baby-boom generation retires with fewer younger workers to support it. The program’s actuaries say that by 2036, the program will have exhausted its reserves and will only be able to pay 77% of promised benefits. Between now and 2036, the government, which has spent the money held in reserve, will have to borrow to meet those obligations.

It’s always been the third rail in politics [4] because seniors vote early and often. Alienating them is hazardous to your politic health.

I’m eager to see what happens out of this and hopefully it’s a compromise that results in a stronger/solvent Social Security [5] program.

(Photo: andrewmorrell [6])