Independent analyst Daniel Amerman ,CFA thinks it naïve to expect inflation-adjusted Social Security payments in perpetuity; nor does he expect the system will go bankrupt; rather, he holds retirees will get paid – just less than before each year out. He says Medicare is not keeping up with inflation and is eating most people’s Social Security check, and higher-income recipients are effectively subsidizing lower-income recipients. This system design biases the claiming decision to no later than age 65. He warns that, because the U.S. national debt is now larger than the U.S. economy, policy makers are using “financial repression,” a policy that is injurious to retirees, to cope with debt.
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