Former Senator Says Reducing Social Security Benefits Can Help Combat The Nation's Debt, 'It's Not Going To Be Easy'

In an interview with the Forbes Newsroom, former Democratic Sen. Bob Kerrey discussed a controversial solution to the nation's growing debt: reducing Social Security benefits. While politically challenging, he presented this proposal as a necessary step to balance the budget and ensure long-term economic stability for the United States. 

Don't Miss:

• Can you guess how many Americans successfully retire with $1,000,000 saved? The percentage may shock you.
• How much money will a $200,000 annuity pay out each month? The numbers may shock you.

Kerrey highlights the urgency for a straightforward approach. "You have to come to the American people and tell them the truth," he states. "You can’t come and dodge it." He says the problem is relatively simple: the government is spending more money than it generates in revenue, leading to an ever-increasing deficit. This year alone, Kerrey says that the United States is projected to borrow an additional trillion dollars to cover the deficit. 

Kerrey argues that solving this issue requires raising additional revenue and adjusting Social Security benefits. He advocates for a balanced approach where lower-income beneficiaries receive more support while overall benefits may need to be slightly reduced. "I personally would like to see lower income beneficiaries get more rather than less. Forty percent of them right now, that’s all they’ve got for income, is Social Security. You’re also going to have to make adjustments in the benefit," Kerrey stated.

See Also: IRS Finalizes 10-Year Rule For Retirement Withdrawals, Making Things ‘Even More Insanely Complicated’

He also addressed the misconception about the retirement age, clarifying that while there are early, normal, and late benefits, the need to quit work to receive Social Security has been eliminated. Adjustments to these benefit categories and increased revenue are necessary to ensure the program's sustainability.

"It is going to take courage," Kerrey says, drawing a parallel to the bravery of the soldiers who landed at Normandy during World War II. "It's not going to be easy. And the American people have to recognize and appreciate when they do finally step forward and say, ‘We're brave enough to get this done.'"

Trending: Rory McIlroy’s mansion in Florida is worth $22 million today, doubling from 2017 — here’s how to get started investing in real estate with just $100

When asked about the divisive political climate, Kerrey acknowledged that the bipartisan opposition to tax increases does pose complications. He also stressed the criticality of addressing the national debt and ensuring the viability of Social Security for future generations. "You can’t solve it without a tax increase … It’s not going to ruin the country. Quite the opposite. We’re going to be borrowing substantially less money and more importantly, we’re going to be able to say to our children, to our grandchildren, ‘We don’t just talk about you, we’ve covered the cost. We’re doing this for you.’"

For those concerned about how potential changes to Social Security could impact their financial future, consulting a financial advisor can provide personalized advice and help navigate the complexities of retirement planning. It's essential to stay informed and proactive in managing one's financial health, especially during economic uncertainty.

Read Next:

• Warren Buffett flipped his neighbor's $67,000 life savings into a $50 million fortune — How much is that worth today?
• Many are surprised by Mark Cuban’s advice for lotto winners: Cash or annuity?