"The proposed fix involves borrowing $1.5 trillion to finance a new trust fund for Social Security, which is expected to run dry by 2032. The borrowed money would be invested in equities for 75 years, with the expectation of repaying the treasury both the initial amount and additional funds used to cover shortfalls."
"Experts from the Center for Retirement Research have raised concerns about the proposal, emphasizing that while investing in equities may seem beneficial, the plan has significant flaws that could jeopardize the financial security of retirees."
A bipartisan proposal by Senators Cassidy and Kaine suggests borrowing $1.5 trillion to create a new Social Security trust fund, addressing the impending depletion of the current fund by 2032. The plan involves investing borrowed funds in equities for 75 years, with the expectation of repaying the treasury $26.5 trillion afterward. Despite endorsements from notable figures, experts from the Center for Retirement Research criticize the proposal, highlighting its potential flaws and questioning its viability for ensuring retirees' financial security.
Read at 24/7 Wall St.
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