What Happens When Social Security Reaches Insolvency?
Ten years. According to a Newsweek article, that’s about how much time is left before Social Security runs out of money for full payments. The problem is that as our population ages, the number of people collecting Social Security is eclipsing the number of people paying taxes into the program.
An article in The Week reported that the number of retired Americans will rise from 56 million in 2024 to 78 million in 2035. Social Security will not run out of money completely but will only take in enough tax revenue to cover about 78% of benefits. Social Security payments would be drastically cut, impacting millions of seniors who rely on their benefits for retirement income.
Saving Social Security
Projections by The Urban Institute show that allowing the Social Security trust fund to deplete would increase the number of Social Security beneficiaries who live in poverty by more than 50 percent.
Fortunately, there is a plan that would prevent that from happening. The Seniors Trust believes the best way to save Social Security is the Social Security Expansion Act. This landmark bill buttresses the long-term solvency of Social Security by expanding benefits for seniors — not cutting them!
When passed, this legislation will require the wealthiest Americans to pay their fair share. This legislation would lift the income tax cap and subject all income above $250,000 to additional Social Security payroll tax. Under this bill, more than 93 percent of households would not see their taxes go up by one penny.
It would also expand Social Security benefits by $200 per month across the board. Retirees would not need to hold off until full retirement age to achieve bigger benefits.
If you agree that this is a viable means of solving Social Security’s solvency issues, please show your support by signing our petition to Congress and join us as we work to improve the lives of senior citizens.
