We’re Not the Only Country With a Social Security Solvency Problem
It is common knowledge that Social Security is facing a pending deficit in the United States. With the number of retirees or soon-to-be retired outpacing the number of workers, the program’s trust fund is dwindling. In about 10 years, benefits will be cut if nothing is done to boost its coffers.
The same problem seems to be plaguing other countries as well. According to Deutsche Welle, Germany’s international broadcaster, China is planning to raise its retirement age — for the first time since the 1950s — because of a declining workforce and looming pension benefit budget shortfalls.
Additionally, the article says “China’s new policy will require employees to contribute more to the social security system to receive pensions starting in 2030. By 2039, workers must have contributed for at least 20 years to be eligible for their pensions.”
It’s time the U.S. government takes this Social Security solvency issue seriously and makes plans to protect the program millions of older Americans rely on. The Seniors Trust believes the best option is to enact The Social Security Expansion Act. It will give retirees an immediate benefits increase of about $200 a month, a fair annual cost-of-living adjustment (COLA), increased minimum benefits, and will ensure the long-term solvency of the Social Security program.
