Social Security Could Soon Be Used for a New Purpose

The Social Security trust fund will be broke in 2034 – broke, caput, gone.

That means if something isn’t done to fix the problems, we, the boomers and those who came before us, will take a 25% to 30% cut in benefits.

Many retired people are living at the poverty level now. What happens when a 25% cut comes along?

This harsh reality makes a recent proposal by Sen. Marco Rubio all the more ridiculous. He wants to use Social Security Administration (SSA) funds to pay people who take family leave for pregnancies.

I kid you not. Rubio’s idea is to take money from future benefits to fund time taken under his proposed Economic Security for New Parents Act.

Don’t get me wrong, on the surface this is a great idea… but not from an agency that is literally broke.

A few months ago, there were proposals to let people use their future SSA benefits to pay their student loans and make midlife career changes.

Really? These people can’t be serious. It’s broke because of programs SSA funds are used for now that they were never designed for. And Rubio wants to put more pressure on the cash flow?

And considering the retirement mess we have on our doorsteps right now, does it make sense to leverage or give up future benefits from our only safety net?

The only other idea that makes less sense is to cut benefits for those who are literally bouncing off the economic bottom now.

I recently did a piece about how we can fix the whole mess and have enough money to fund worthwhile ideas like a paid leave for pregnancy. But it requires more than just spending what we don’t have.

My God, does Washington have any idea what’s going on out here?

Let your elected representatives know they have to fix the current problems with the SSA before they start giving away more money.

Good investing,

Steve