Time is Running Out to Shore Up Social Security’s Trust Fund
Eight years. That’s how much time lawmakers have left to shore up Social Security, or recipients will face a drastic cut to their retirement benefits.
According to an article by CNBC, the Social Security Board of Trustees released its annual report stating that the trust fund Social Security relies on to pay retirement benefits will likely be depleted in 2033. At that time, it will only be able to pay 77 percent of the promised retirement benefits.
Although this prediction remains unchanged from last year, it’s still highly concerning. As baby boomers reach peak retirement age, payroll taxes, which fund Social Security, will continue to decline. Additionally, more older Americans are receiving retirement benefits now that the Social Security Fairness Act has gone into effect.
Congress Needs to Act
Hopefully, this year’s Trust Fund report will serve as a wake-up call to Congress. Lawmakers need to act now to shore up Social Security before its coffers are drained and benefits need to be slashed.
We at The Seniors Trust believe the best option is the Social Security Expansion Act. Not only will it strengthen the Social Security program, ensuring its future, but this bill will also provide financial relief for retirees.
This landmark piece of legislation would increase benefits by $200 per month across the board; update and increase the minimum benefit to 125 percent of poverty, to ensure that no one retires into poverty after a lifetime of work; and switch to the more accurate consumer price index for the elderly (CPI-E), that more accurately reflects seniors’ spending.
Regarding solvency, the Social Security Expansion Act will ensure that all benefits will be paid in full and on time for the next 75 years and beyond by requiring those with incomes of $250,000 or more to pay into Social Security on all of their income, earned and unearned, above that $250,000 threshold.
