Warning: Retirees Could Lose as Much as $17,400 in Social Security Benefits
Social Security has a severe solvency issue. According to a report by CBS News, the Social Security Administration (SSA) estimates benefits will be cut by 23 percent in 2033 unless the program is strengthened. That could be financially devastating for the 50 million older Americans who receive Social Security checks. The Committee for a Responsible Federal Budget forecasts that “senior poverty would rise significantly upon insolvency.”
A new analysis for the Committee for a Responsible Federal Budget found that when Social Security reaches the point of insolvency, the typical newly retired, dual-earner couple will see their Social Security checks reduced by $17,400 annually or $1,450 per month, and a newly retired couple with one earner would see a cut of $13,100.
This illustrates the crucial need for Congress to get to work and come up with a plan to strengthen Social Security.
Securing Solvency
As the CBS article pointed out, there have been plenty of proposals to fix Social Security’s looming funding shortfall, either by raising taxes or increasing the retirement age, or a combination of the two. The Seniors Trust is a firm believer that the Social Security Expansion Act is the best solution.
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.
If you agree that this 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.
