A Social Security Expert Explains the Funding Crisis in Simple Terms

The latest projections show that the primary Social Security trust fund could be depleted in about six years. If Congress does not act to fix the funding crisis, beneficiaries could face automatic, across-the-board reductions in payments. For retirees, that could be about $6,000 per year less than they are currently receiving.

To fully understand what’s at stake, Rutgers Law School spoke with the director of the Economic Justice and Public Benefits, who also happens to be an expert in Social Security law. In a short Q & A session, he clearly and concisely explains why Social Security is running out of money, how we got into this situation, who would be most affected, what will happen if Congress does not act in time, and what “guiding principles” he thinks should be used to shape the next reform plan.

The Seniors Trust is committed to improving the well-being of older Americans. We are doing that financially by encouraging lawmakers to enact the Social Security Expansion Act. This landmark piece of legislation will give retirees an immediate increase of about $200 a month in benefits, a fair annual cost-of-living adjustment (COLA), increased minimum benefits, and ensure the long-term solvency of the Social Security program.