It may not be ideal – or even possible for some – to live on Social Security benefits alone during retirement. However, Maurie Backman at The Motley Fool points out, many retirees do. Unfortunately, there are retirees who find themselves needing to earn more to supplement their monthly benefit payments. But, due to old rules, these individuals take on a large risk—getting their Social Security benefits taxed.
Why This Matters
The current rules surrounding taxation of benefits, which have been adjusted throughout the years; now allow up to 85% of an individual’s benefits to be taxed. However, the problem comes into play when we take into account the rates of inflation causing the cost of living to increase.
Unfortunately, the income thresholds did not accommodate this increase, leaving senior citizens in a difficult position.
How Things Look Today
After the height of the pandemic, we are seeing a rapid increase in prices for daily necessities. This rapid increase coupled with a static income threshold means senior citizens are left playing a numbers game.
As we previously examined, the average retiree household spends over $50,000 each year. However, with an income threshold that rises once a year, retirees are not guaranteed their entire benefit payment each month. This is a problem.
Take a Stand
Our bill, The Senior Citizens Bill of Rights, includes the guarantee that seniors receiving Social Security benefits won’t be “penalized and taxed at a higher rate for choosing to work after retiring from their career.” This guarantee allows senior citizens to achieve more financial security, working and earning more money to cover the extra financial responsibilities so many are seen taking on today.
Still not convinced? Take a look at the results from our latest survey. The overwhelming support for the seven rights in our bill shows America backs this groundbreaking bill that would help senior citizens achieve more financial security. Please be sure to head on over to our petition to help us urge the politicians in Washington to pass this bill now.
