Here’s How Much Americans Stand to Lose if Social Security Benefits are Cut

By now, everyone knows that Social Security is facing a severe solvency issue. If Congress does not act soon, the program will be forced to slash benefits within the next ten years. According to an article by 401K Specialist magazine, citing an analysis by PensionBee,  Americans will need an additional $100,000 to make up for the expected 17 percent cut to their Social Security benefits.

Of course, the amount depends on age. The PensionBee analysis found that “a 25-year-old…would only need to save an additional $59 a month to offset future cuts, yet a 55-year-old near-retiree would need to save an extra $513 each month. Over time, a 55-year-old participant would have to allocate an additional $73,896 to their savings while a 25-year-old would require a bonus of $29,736.”

A Solid Solution

This makes it clear that something must be done to shore up Social Security solvency — and increase benefits.

We at The Seniors Trust believe the Social Security Expansion Act sponsored by Sen. Bernie Sanders (I-VT), Sen. Elizabeth Warren (D-MA), and Rep. Jan Schakowsky (D-IL) is a solid solution. Not only does it provide financial relief for retirees, but it also strengthens the Social Security program, ensuring its long-term future.

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.

And, in regards to the pending deficit, this bill would 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.