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Show Saving Social Security It may be a relief to many of America's 25 million over-65s to know that experts agree the solution to Social Security's financial problems does not require reduction in present benefits. bene-fits. The National Commission on Social Security Reform, after a year-long study, recommended no cuts in present benefits. However, it urged a six-month delay in the cost-of-living adjustment adjust-ment retirees are scheduled to get this July. SIP 2. -mm Many older Americans are watching with interest proposals to save the Social Security system. Most experts are aware of two key facts: 1. The average person who retires now, with a spouse who doesn't work outside the home, gets back all his contributions within 13 months of his retirement, and 2. Over the last three years, average wages went up 30 percent while Social Security benefits rose by 40 percent. So the question really is this: Should the benefits for people on Social Security go up faster than the wages of those who are paying them? Adding to the financial pressure on Social Security is the fact that people are living longer. For example, in 1940 a person age 65 could expect to live another 13 years. Today, a person 65 can expect to live almost 17 years. For that reason, the American Council of Life Insurance believes the normal retirement age should be raised gradually to age 68 starting around 1990. |