Rich Fiesta, executive director of The Alliance for Retired Americans, a Washington, D.C.-based advocacy group, says he is very concerned about Social Security.
“We’re very concerned on Social Security after the action the House took on the first day,” says Fiesta. “They are arbitrarily changing the rules that handcuffs Social Security in terms of the ability to move funds between the retirement trust fund and the disability trust fund, which has been done 11 times in the history of the program. This last-minute rule change puts the Social Security system as a whole in jeopardy and could subject it to potential benefit cuts over the next two years.”
Kristine Aretha, consultant with M&O Marketing in Southfield, Mich., says she expects Congress to target retirement accounts and life insurance to some degree.
“Congress passed a $1.1 trillion budget,” she says. “We have $18 trillion in debt. We have approximately $18.2 trillion sitting in retirement accounts. When we start connecting the dots, those vehicles are low-hanging fruit — easy for them to come after.” (And they will never call them a tax on retires.)
“They will do slow increments on those kinds of things and slowly peck away,” she says. “In one form or another, since 2013, they’ve tried to attack these vehicles knowing the amount of money sitting there. The saddest part is that the retirement account and insurance are what protect mainstream America — their constituents. It’s the one way they can build and transfer wealth. So, I hate to see Congress take it away.”