This week is a good week for millions of Americans because they may start getting a new $25,000 bonus if they meet certain requirements. Newsweek says that high school graduates will benefit from Social Security if it is passed by Congress.
Representative Dean Phillips of Minnesota proposed the American Dream Accounts Act in the House. Its goal is to set up an investment account for every child born in the United States through a program run by the Social Security Administration.
A sum of about $5,000 would be put into an index fund and made available to people who graduated from high school, got their GED, or both.
A new Social Security payout of up to $25,000 after Americans graduate
The law says that most Americans will be able to access $25,000 when their bonds mature.
This is because by then, the assets will have made an estimated 10% annual rate of return. In a statement, Representative Dean Philips said, “everyone must have the same chance to achieve the American Dream in order for our great country to reach its full potential.
” This law makes sure that every kid in the United States has the chance to grow and reach their full potential.
Philips also said that investing pays off and that now is the time to back American values like freedom of choice and equal opportunities for everyone by passing the American Dream Accounts Act.
The law may also make it easier to put down a down payment on a house, pay for college, or even start a business.
It will also let students use a smartphone app to keep an eye on how their investment accounts are doing. It should not just be for rich people and people with a lot of connections.
Jim Pugh, who is in charge of the Universal Income Project, said that the American Dream Accounts Act will make sure that everyone has the chance to achieve their goals, which will lead to long-term success.
People who volunteer for the Peace Corps or Ameri Corps could also get a $10,000 incentive through the scheme.
The new Social Security benefit will give young people more money to invest
Alex Beene, a teacher of financial literacy at the University of Tennessee at Martin, says that the bill makes it clear how important it is to teach young people about money and give them the tools they need to handle their own.
Beene thinks that people are more likely to see the value in saving for the future when they have their own money. Please read the whole message to learn more about what he said.
Lastly, the fund that gives Social Security benefits to seniors and disabled people will likely run out of money by the middle of the 1930s if Congress does not make changes.
The most current official predictions say that the main trust fund that pays out Social Security benefits will likely run out in 2033 or 2034, which will mean that guaranteed payments will drop by over 20%.
The Committee for a Responsible Federal Budget has put out a study that tries to figure out how much the benefit cuts will hurt people.
The study found that the average person with two incomes would lose $16,500 a year in benefits if they retired before the trust fund ran out.
The authors of the study point out that during their campaigns, both former President Donald Trump and Vice President Kamala Harris said they would “protect” Social Security.
But neither has given a plan for how to do that. The nonpartisan advocacy group says Trump has called for taking taxes out of Social Security payments, which would make the program’s financial problems even worse.
Because of this, Congress needs to fix the program’s money problems in the next few years so that millions of Americans can live better in retirement.
Good news: policymakers have many tools at their disposal to help change direction without putting too much pressure on any one stakeholder group.
Also see:-Cost of Living (COLA) update: new Social Security changes October 10, 2024
