NOW IS THE TIME…



NOW IS THE TIME…

As you know, I'm all about one thing: giving you the information you need to get your house in order. That doesn't just mean cleaning out your closets or tidying up the basement — it means looking hard at your household finances and making sure the foundation under your feet is solid.

Right now, a lot of folks are looking at their monthly Social Security checks and wondering if the numbers still add up. Between inflation at the grocery store and the rumor mill spinning on the evening news, it's easy to feel uneasy. So, let's clear the air, sort through the noise, and look at the facts: what's changing right now, what's coming next year, and what things will most likely look like in 2032 — the year some have predicted Social Security, as we know it, will end.

This past January, Uncle Sam rolled out a 2.8 percent Cost-of-Living Adjustment (COLA). For the average retiree, that put an extra fifty-six dollars ($56.00) a month into their check. Now, $56.00 is $56.00 — but you and I both know it doesn't go nearly as far at the checkout lane as it used to.

It doesn't stop there. If you like to keep busy and earn a little extra pocket money, your earning limit was raised too. If you're under full retirement age, you can now make up to twenty-four thousand, four hundred and eighty dollars ($24,480.00) a year before they start snatching back part of your benefit. It's a welcome bit of breathing room for folks who aren't quite ready to fully quit the workforce.

But the biggest news to celebrate this year is a massive victory for our public servants. For forty (40) long years, two rules — the Windfall Elimination Provision and the Government Pension Offset — unfairly penalized public-service employees: retired teachers, police officers, firefighters, and civil servants. If they had a pension from their public job, the government had slashed their hard-earned Social Security benefits.

That's over. The Social Security Fairness Act finally kicked those penalties to the curb and fully repealed both offsets, meaning roughly three million of our neighbors are finally getting every penny they rightfully earned. If that applies to you or someone you know, don't sit on it — make sure the required paperwork is accurately completed and submitted so your household gets what it's owed.

We won't get the official word from the Social Security Administration COLA until mid-

October, but we can already see which way the wind is blowing. Leading senior-advocacy groups like the Senior Citizens League and AARP are running the numbers based on current inflation data, and they're projecting the 2027 COLA to land somewhere between 3.6 and 3.8 percent. Even at 3.7 percent, that's a noticeably bigger bump than this year's. At 3.8 percent, the average check would rise by about seventy-nine dollars ($79.00) a month.

Don't spend that increase before it lands, though. Medicare Part B premiums typically rise at the same time and swallow up a chunk of the COLA before it ever hits your bank account. It's practically a parody of scripture: "The Lord gives, and the Lord takes away."

Now let me take out my crystal ball and look further down the road, to 2032. Turn on the television and you'll hear talking heads screaming that the sky is falling and Social Security is going broke. Don't let those scare tactics ruffle your feathers — here's the real deal.

According to the official trustees, the Social Security trust funds are on track to run low around 2032. That means by 2031, we'll be sitting right on the edge, with the clock ticking down. If Congress sits on its hands and does nothing between now and then, the system would only bring in enough payroll tax to pay out about eighty percent of what people are owed.

I don't believe our legislators in Washington are going to let millions of older Americans — a massive voting bloc — lose twenty percent of their income right before an election year. That would be political suicide. I believe and will be working towards getting Congress, by 2031 or sooner, to roll up its sleeves and fix the problem. So why not now? Why not nip this in the bud? A stitch in time saves nine, as the old saying goes.

One straightforward fix: eliminate the cap on taxable earnings, so high earners keep paying into Social Security above today's contribution limit. My hope is that with strong, persistent public demand, Congress will lift that cap so wealthier Americans pay payroll taxes on income above the current limit.

Congress should also gradually raise the retirement age for younger workers who are still decades from retiring. Why not treat 70 as the new benchmark instead of the current 67.5? Upon entering my ninth decade, I see 70 as a realistic retirement age — it's the age I chose to begin receiving my own Social Security benefits.

One more issue worth fixing: how we measure inflation for COLA calculations. I'd suggest switching to an index that actually tracks what seniors spend on healthcare, rather than what young urban workers spend on electronics. As the saying goes, "Figures don't lie, but liars figure." Look no further than the Senate hearings examining COVID-19 and Dr. Fauci's leadership for a case study in how government can obscure more than it reveals.

If receiving Social Security matters to you, don't just read about it — act on it. Contact your U.S. Representative and your Senators and tell them, in plain terms, that you want them to fix Social Security so it's there for generations to come.

Here's how to make that real:

  1. Find out who's on your ballot. Look up the candidates running for your House seat and for Senate this November.
  2. Ask them directly: "What will you do to protect Social Security for future generations?" Push for a specific answer, not a talking point.
  3. Don't forget sitting officials who aren't up for election. Senator Tammy Duckworth isn't on the ballot this cycle, but she's still in office and still accountable — ask her the same question.
  4. Follow up in writing. A phone call gets attention; a letter or email creates a record.
  5. Bring others with you. Talk to the people in your life about what you've learned, and encourage them to ask their representatives the same hard questions.

Remember, all things are possible to those who believe — but belief has to turn into action to mean anything. I'm one of those believers that action, not just talk, is what brings about change.

If you care about the future of our constitutional republic, this is where that care gets tested. Get your house in order. Get informed. Get involved. Show the people who come after you that you loved them enough to stay informed, focus on what you can control, and build your decisions on facts instead of fear.

My hope is that my phone rings off the hook this week with people who want to understand what they can do — people ready to become proactive about their future, get their house in order, and leave a legacy for generations to come.  Call me if you value continuing to receive a full Social Security check.  This is the time that we the people up our game to protect the Social Security benefits that we earned.  We can all win it if together we are all in it – now is the time.

THIS WEEK'S QUIZ: What is the easiest way to find out who your elected officials are and what they have done to support the issues protecting your quality of life?

Answer to Last Week's Quiz: The National Association for the Advancement of Colored People (NAACP) is the oldest civil rights organization in our nation. This oldest and boldest organization continues to fight for your rights under the prevailing laws. The need is great, but since the 60s the workers have become few.  Too many of us don’t contribute but still believe that we are entitled to receive.  FAFO, other folks, as you have seen, have organized and are pushing and receiving changes in the law that serve their interest and not yours.  Wake up my Skin folk.

For Questions or Help: 773-817-0601 basheriff1@gmail.com

Disclaimer: The illustrations and examples presented in this column are not, nor are they intended to be, legal, financial, tax, insurance, or other licensed professional advice. Readers should consult the licensed professional of their choice regarding their individual circumstances.



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