Texas Lawmaker Offers Social Security Solution

FORT WORTH (CBSDFW.COM)- The guitar has been Sara McDonald's passion since college.  In fact, she earns a living teaching lessons. The self-employed musician has also been paying into Social Security for 20 years.  "If I'm not going to get it, then I just as soon not pay now," McDonald said with a chuckle.

She may be laughing now, but the 39-year-old knows that the Social Security pot may be empty by the time she's ready to retire.  "It's certainly not fair.  The idea of putting in money when you're younger and then by the time you retire, it's not going to be available is really irritating."

The Social Security Administration estimates its funds will be exhausted by 2036.  Ideas to fix the problem range from increasing payroll taxes to severe cuts to the program.

Senator Kay Bailey Hutchison is proposing what she calls a "moderate" solution that would start in the year 2016.  Her bill, called the "Defend and Save Social Security Act", would not impact anyone 58 years or older.  However, anyone under 58 would see a gradual increase over time in their retirement age.  "The normal retirement age would reach 67 by 2019, 68 by 2023 and 69 by 2027.  It stops at age 69," said the U.S. Senator from Dallas.

Social Security benefits are subject to an increase, year to year, if an annual cost of living adjustment is applied.  Senator Hutchison also wants to cut one percent from that cost of living adjustment.

Meanwhile, Congress may get some help from an unlikely source.  The AARP has been a leading opponent to any and all cuts to Social Security.  However, the powerful lobby for older americans now says it would be open to minor reductions in Social Security benefits.