A New Plan to Solve Social Security Solvency Issues May Make Some People Mad

The clock is ticking. Social Security is facing a severe funding deficit. If Congress does not take action soon to shore up the finances, retirees could see their benefits slashed more than 20 percent in 2032.

According to Newsweek, more than 50 millions retirees rely on their monthly Social Security benefits as a steady source of income. This makes it clear that lawmakers need to act — and fast.

A Solvency Solution Proposal

One new idea on how to stave off insolvency is to cap the annual Social Security cost-of-living adjustment (COLA) for those receiving the biggest benefits. Under the Committee for a Responsible Federal Budget (CRFB) plan, “everyone would still receive a COLA, but retirees with very high benefits — typically those who had the highest lifetime earnings — would see their annual increase limited to a set dollar amount.”

The CRFB says the proposal would save money right away and help strengthen Social Security in the long run, possibly keeping it solvent for decades to come.

A Better Plan

While we appreciate that others are looking out for seniors by trying to solve the Social Security solvency issue, we at The Seniors Trust believe the solution already exists. We have been working diligently to get Congress to enact the Social Security Expansion Act.

 Not only will this landmark piece of legislation resolve the solvency issues without needing to cut benefits to any older Americans, but it will increase benefits by $200 per month, implement a fair Cost-of-Living Adjustment (COLA), and legally guarantee the current and future benefits of all Social Security recipients.

We ask you to sign our petition to Congress and join us as we strive to improve the lives of senior citizens.