The Challenges of Shoring Up Social Security Solvency

By now, everyone knows that the Social Security trust fund is facing a deficit. If nothing changes, there will be no choice but to drastically cut benefits within the next eight or nine years.

Obviously, no one wants to see that happen. According to an article by AOL, the government has three options: increase revenue by raising taxes, reduce expenses by cutting benefits, or increase revenue and reduce expenses.

None of those is ideal, and each has drawbacks. For example, the article states that “increasing the ceiling on income subject to Social Security payroll taxes ($176,100 in 2025) would primarily affect high earners. Raising payroll taxes on everyone would affect people of all economic backgrounds. Similarly, you could cut benefits for all retirees, or raise the full retirement age (FRA), which would act as a cut only for younger adults.”

The Seniors Trust believes the best solution is the passage of the Social Security Expansion Act. When enacted, this landmark piece of legislation will ensure the long-term solvency of the Social Security program. In addition, it will give retirees an immediate benefits increase of about $200 a month, create a fair annual cost-of-living adjustment (COLA), and increase minimum benefits.