Fixing Social Security Starts With a Visit to Townsville

By Allison Bell

News March 16, 2023 at 11:06 AM

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The American Academy of Actuaries has developed a tool for educating your clients and other Americans about Social Security's finances: the Social Security Challenge online simulation.

The academy shows visitors a Social Security basics video, then gives visitors a chance to move around the virtual community of "Townsville" and talk to the residents.

Once visitors have heard what the residents think, they make Social Security solvency decisions and hear what the simulation designers think about their choices.

Social Security's trustees say the main retirement trust fund could run dry in 2035.

If the government used only current Social Security payroll tax revenue to meet retirement benefits obligations, that could lead to an immediate 20% cut in retirement benefits payments, according to the trustees.

Linda Stone, an American Academy of Actuaries senior pension fellow, said Congress can avoid the 20% benefits cut if it acts sooner rather than later to address the solvency problem, by making now choices about matters such as how payroll taxes should work and what the normal retirement age should be.

(Image: Adobe Stock)

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