A report says changes that were approved by Congress in the 1980s are set to affect retirees born in the year 1960 or later soon, showing the importance of supporting one's retirement solvency with a life insurance policy.
The report from the National Academy of Social Insurance said Congress laid out benefits cuts for those retirees years ago, and it should result in a 19 percent decrease in Social Security benefits for that segment of the population. The changes were meant to improve the financial strength of the Social Security system by increasing the retirement age from 65 to 67 for those born after 1960 and taxing part of the benefit income. Additionally, cost-of-living adjustments would have their effects delayed by six months.
"The 1983 changes are often described as a balanced plan of benefits cuts and contribution increases," the report noted. "But that is not the case for the long run: the benefit cuts taking place in this century were not balanced by any new contributions."
Many Americans find themselves overly reliant on SSI for their post-retirement income, leaving their finances at risk in the event of an unforeseen incident. Life insurance can provide a valuable safety net for those families.