Here’s How Much You Stand to Lose If Congress Doesn’t Fix Social Security

We’ve all heard the news. Social Security’s trust fund is quickly being depleted. If nothing changes, it will be depleted in less than 10 years. At that time, there will be no choice but to slash benefits. Now, as a Fox Business report explains, we are learning how big those cuts could be. It’s not pretty!

During testimony before a House panel, the head actuaries for Social Security told Congressional leaders that once the trust fund is depleted the program would only be able to pay out what they receive through incoming payroll taxes, meaning benefits would be automatically cut under current law.

Social Security Cuts

Predictions are that Social Security’s Old-Age and Survivors Insurance (OASI) trust fund will be depleted in 2033. At that time just 79 percent of scheduled benefits would be payable. However, when combined with the Disability Insurance (DI) fund, the date shifts to 2035 with 83percent of benefits payable. According to the Fox Business report, “Based on the $1,907 average monthly benefit as of January 2024, that 17 percent cut would leave beneficiaries with a $1,582 check — $325 less per month and $3,900 less on an annual basis.”

Retirees are already struggling financially, especially because of high inflation over the past few years. A cut of $325 each month would be devastating to the millions of older Americans who rely on Social Security for their retirement income.

Congressional Support

But it doesn’t have to come to that. Members of Congress from both sides of the aisle have proposed a wide variety of policies aimed at reforming Social Security and shoring up its finances.

Stephen Goss, the chief actuary for the Social Security Administration, sees promise, stating: “Because of many, many members of Congress putting forth proposals for affecting Social Security, we have a large list of provisions and proposals up on our website to sort of look at and choose from.”

A Solid Solution

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:

• Extend the solvency of the Social Security trust fund through 2096, by requiring the wealthiest Americans to pay their fair share. This legislation would lift the income tax cap, which currently stands at $168,600, and subject all income above $250,000 to additional Social Security Payroll tax.
• Expand Social Security benefits across the board for current and new beneficiaries. Under this bill, Social Security benefits for someone turning 62 next year would be $200 per month higher. That’s welcome news during this time of record-high inflation.
• Increase Cost-of-Living Adjustments (COLAs). This bill would more accurately measure the spending patterns of seniors by adopting the Consumer Price Index for the Elderly (CPI-E), which would change the formula to reflect what seniors spend a disproportionate amount of their income on such as health care and prescription drugs.

If this is something you can support, please sign our petition to Congress and join us as we work to improve the lives of senior citizens.