Bloomberg unveils Social Security, retirement plan
Reserve funds for the program are expected to be depleted by 2035
Democratic presidential candidate Mike Bloomberg released his plan for Social Security on Sunday, vowing to strengthen the government-run program’s finances to help Americans prepare for retirement.
“Americans who have worked for decades deserve the opportunity to retire without facing constant financial pressure, and, as president, I will strengthen Social Security to allow seniors to do just that,” said Bloomberg.
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The former New York City mayor plans to help those currently in the workforce by creating a public-option retirement savings plan. Bloomberg’s campaign said the plan will include automatic contributions for all income earners, provide a government match for low-income workers and automatically invest savings in low-risk funds. It will also supplement the incomes of low-wage workers who continue to work beyond their designated retirement age.
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The plan will assist participants whose Social Security payment falls below the federal poverty line by introducing a new minimum benefit and will raise benefits in line with inflation that would reflect costs seniors will face.
Currently, the Social Security tax is 6.2 percent and, with Medicare, 7.65 percent, which are paid for by both employees and their employers. The wage base limit for the Social Security tax in 2020 is $137,700.
Reserve funds for the program are expected to be depleted by 2035.
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Medicare and Medicaid also will be improved under his plan, the campaign said, including limiting the cost of out-of-pocket prescriptions.
Bloomberg will provide insurance for “catastrophic” long-term care while working with states to build new programs to those who need at-home services. Pilot programs will be initiated to cover family caregiving and other unpaid employment.
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Meanwhile, the plan aims to help seniors live longer at home by protecting them from predatory lending practices, expanding rental assistance and helping prevent evictions.