What to Expect in Terms of Social Security Reform

And here are Obama’s six principles for reform:

Any reform should strengthen Social Security for future generations and restore long-term solvency;
The Administration will oppose any measures that privatize or weaken the Social Security system;
All measures to strengthen solvency should be on the table, the Administration will not accept an approach that slashes benefits for future generations;
No current beneficiaries should see their basic benefits reduced;
Reform should strengthen retirement security for the most vulnerable, including low-income seniors;
Reform should maintain robust disability and survivors’ benefits.

WE will most likely see a mix of revenue increases and benefit cuts.

The Bowles-Simpson plan would cut the Social Security benefit of the median retiree in 2050 by 13%
The Domenici-Rivlin plan would cut the Social Security benefit of the median retiree in 2050 by 9%

10,000 baby boomers are retiring each day.

Automatic IRAs

Obama has long been a proponent of the automatic IRA.
Obama’s 2013 budget contained the Automatic IRA, a plan developed by Brookings’ Retirement Security Project in conjunction with The Heritage Foundation.

According to the administration’s website, there are more than 75 million working Americans—about half the workforce—who don’t have access to a retirement plan through their employer and the auto IRA would solve that problem.