Why Social Security Solvency is a Multi-Generational Concern
The clock is ticking. By all estimates, Social Security has less than ten years until it needs to start reducing benefits to make up for its funding shortfall. Its trust fund reserves are dwindling and time is running out for lawmakers to come up with a solvency solution.
According to a report by Nasdaq.com, Social Security is a critical source of income for Americans age 65 and older. In 2023, 67 million Americans received monthly Social Security benefits, totaling $1.4 trillion paid throughout the year.
The Big Concern
With so many people relying on Social Security benefits, it’s easy to see why the trust fund deficit is such a big concern. And it’s not just older Americans who are worried.
According to Nationwide Retirement Institute’s 10th annual Social Security survey, Americans of all ages are worried about their financial futures. Here’s a quick look at some of the findings:
- 75% of adults age 50+ say they believe Social Security will run out of funding in their lifetime. (Up from 66% in 2014)
- 76% of Gen Zers and 76% of Millennials believe they will need to keep working in retirement because Social Security will not pay enough.
- 21% of adults age 50+ say they have no source of retirement income in addition to Social Security.
The Solvency 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 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.
Additionally, the Consumer Price Index for the Elderly (CPI-E) would be used to calculate Social Security Cost-of-Living Adjustments (COLAs) instead of the Consumer Price Index for Urban Wage Earners (CPI-W) used currently. The CPI-E takes the unique spending habits of seniors into account — particularly regarding the cost of healthcare — and offers a more realistic COLA for retirees.
If you agree that the Social Security Expansion Act 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.
