You probably already know that Social Security benefits are getting a big boost for 2022. With an almost 6 percent cost-of-living adjustment (COLA), the average Social Security recipient could see an extra $92 in the bank each month. While that certainly doesn’t allow for a major lifestyle change, the benefits boost can certainly help offset the increased expenses we are experiencing because of inflation.
However, Money Talk News warns that there are many things that could cut into your Social Security income, causing it to decrease. It lays out ten scenarios, but the most concerning might well be “outliving the Social Security trust fund.”
Trust Fund Troubles
The Social Security Board of Trustees’ 2021 report cautions that the Social Security trust fund — the fund used to pay benefits – is in danger of running out of money by 2033. At that time, the report states that Social Security will only have enough revenue to pay 76 percent of Social Security benefits. That’s scary news for retirees counting on their full Social Security benefits.
A big part of the problem is that the agency is not collecting enough revenue to keep up with the promised payouts because Baby Boomers are now entering retirement and the COVID-related “great resignation.” With less people working there is less money going into reserves.
Lean on Lawmakers
The only way to protect future benefits is for Congress to act now to enact the Social Security Expansion Act. The Seniors Trust has been working diligently to promote this landmark piece of legislation. When passed, this legislation guarantees the long-term solvency of the Social Security program.
The bill will also increase benefits for most recipients by about $65 per month and establish a fairer COLA that takes into account the unique spending habits of seniors.
We need your help to make this happen! Please sign our petition to Congress and tell lawmakers the time to act is now — they must pass the Social Security Expansion Act.