This is What’s Causing the Social Security Trust Fund Shortfall
Social Security is not going bankrupt, but it is facing a funding shortfall. According to a Yahoo! Finance article, citing the Social Security Board of Trustees report, “fund reserves will become depleted, with 100% benefits being paid only through 2033.”
This is happening because Social Security is paying out more in benefits than it is taking in through payroll taxes. And it will likely only get worse because with each passing year, fewer workers are funding more recipients.
A graph in the article illustrates the dilemma, showing that in 1965, 4.0 workers were paying into the system for every one recipient. Today, it’s about 2.7 workers per beneficiary. And by 2045, it’s expected to be 2.2 workers per Social Security recipient.
It’s clear that lawmakers need to come up with a plan to shore up Social Security solvency – and soon – or recipients will see major benefit cuts.
The Seniors Trust is committed to improving the financial well-being of older Americans by passing the Social Security Expansion Act. It will give retirees an immediate increase of about $200 a month in benefits, a fair annual cost-of-living adjustment (COLA), increased minimum benefits, and ensure the long-term solvency of the Social Security program.
