There has been a lot of speculation lately about the future of Social Security, with many young people fearing the program will run out of money before they are eligible to claim benefits. Fueling the fear is a recent warning from the Social Security Administration that last year’s payroll tax suspension to help boost the economy due to COVID-19 could speed up the trust fund drain. So, should we be concerned? Is the Social Security trust fund really running out of money?
ThinkAdvisor did a deep dive into this and discovered that the trust fund’s future is indeed in danger because the government, for decades, has been using excess payroll taxes to help cover current spending. However, retirees don’t need to worry about Social Security running out of money to pay benefits as long as current workers are paying into the system. This article provides an excellent understanding of the history behind the Social Security trust fund, how it is financed, and when or if funds will run out. Right now, it looks like the trust fund could be depleted within the next 15 years and will be unable to finance full benefits. If nothing is done, the program will only be able to pay about 75% of estimated benefits by 2035. That’s why there have been an increasing number of calls for Social Security reform to sustain solvency of the program that millions of American seniors earned and rely on every year.
We Need Change Now
Leading the charge for Social Security reform is The Seniors Trust. We are calling for the enactment of The Social Security Expansion Act. Section 9 of this landmark piece of legislation calls for establishment of a Social Security Trust Fund. It proposes combining the Disability Insurance Trust Fund with the Old Age and Survivors Trust fund to establish one cohesive Trust Fund to help senior citizens and persons with disabilities.
When passed, the Social Security Expansion Act will improve the long-term solvency of Social Security by ensuring the program can pay every benefit owed to every eligible American for the next 50+ years.
In addition to guaranteeing benefits for future generations, the Social Security Expansion Act will help put more money in the pockets of seniors today. It calls for expanding Social Security benefits, increasing the annual Cost-of-Living Adjustment, and updating the Special Minimum Benefit to keep deserving American retirees from falling below the poverty line.
You can show your support for today’s seniors – and tomorrow’s – by signing The Senior Trust’s petition to Congress.