Social Security Benefit Cuts Could be Coming Sooner Than We Thought
According to the Social Security Administration’s predictions, the Old Age and Survivors Insurance Trust Fund, which funds retirement and survivor benefits, will become depleted in 2034. At that time, it will only be able to pay about 77 percent of scheduled benefits. That’s bad news for the millions of older Americans who rely on Social Security.
But it gets even worse. A new Congressional Budget Office report projects Social Security will reach deficit and begin cutting benefits as early as 2033. That’s in just 10 years!
A report by The Daily Signal finds the Congressional Budget Office’s predictions to be more realistic. Namely because it uses a fertility rate that is more in line with current trends and assumes the actual current rate of inflation.
No matter which prediction you prefer to follow, the situation does not look promising. Social Security’s future is anything but secure.
Congress Needs to Act — Now!
The time has come for Congress to take action to secure the long-term solvency of Social Security. We must shore up the trust fund before it runs out in 10 or 11 years, depending upon which prediction is correct.
A current piece of legislation — Social Security 2100: A Sacred Trust — would create temporary benefit increases and extend the program’s prospects by four years to 2038. We need to do better.
The Seniors Trust wants lawmakers to enact the Social Security Expansion Act. It calls for lifting the cap on Social Security taxes to ensure that the wealthiest Americans pay a fairer amount in relation to their income. The bill’s sponsors say doing so would extend the solvency of Social Security until the year 2096.
Additionally, the Social Security Expansion Act would provide bigger monthly benefits — about $200 on average — and establish a fairer cost-of-living adjustment (COLA). Please join us in our efforts to preserve Social Security by urging your elected representatives to pass this crucial piece of legislation today!
