What the Future Could Hold for Social Security
We’ve all heard the doom and gloom reports that Social Security is going broke. While that is not true, its trust fund is not as robust as it used to be. Namely because as the population ages, there are more people taking out of the system than paying in. MarketWatch looked into this predicament and found three ways Social Security benefits could change in the not-so-distant future.
- Increasing the full retirement age (FRA) could address Social Security’s funding problem. This idea is often called into question because it does not consider the impact on individuals with physically demanding jobs or limited job opportunities later in life.
- Means-testing is another unpopular idea. It would involve adjusting benefit amounts based on an individual’s income or assets. While it could increase Social Security coffers, critics call it unfair, especially for middle-income earners who have paid into the system throughout their working lives and rely on Social Security as a significant part of their retirement income.
- The most plausible solution might be benefit cuts. This is not ideal for the millions of retirees who rely on Social Security benefits as retirement income to pay for essential living expenses. Most of the benefit reduction proposals also call for expanding the tax base.
The Seniors Trust believes the Social Security Expansion Act is the best option. This landmark piece of legislation would increase Social Security monthly benefits and extend its solvency for another 70+ years by requiring the wealthy to pay their fair share by lifting the wage cap. Please join our efforts by signing our petition asking lawmakers to enact this critical bill.
