Social Security is facing a funding issue. The latest Social Security Trustees’ Report says that the trust fund that supports the critical program millions of seniors rely on could be depleted in less than seven years. If/when that happens, a NewsNation article says that “retirees would face a 22 percent benefit cut, lowering the average monthly retirement check by roughly $450 based on current figures.”
Fortunately, there is still time to fix the situation. The article lays out four possible plans to restore solvency:
Raise or eliminate the Social Security tax cap. Raising the cap, or eliminating it, would generate additional revenue by requiring higher earners to pay Social Security taxes on more of their income.
Increase the Social Security payroll tax rate. Although unpopular with workers, even a small increase in payroll taxes “could generate significant revenue and would be relatively straightforward to administer.”
Raise the full retirement age. The article notes that supporters of this plan believe “raising the retirement age would help account for longer life expectancies and the growing number of years Americans spend in retirement.”
Change how COLAs are calculated. Changing the formula used to calculate inflation increases could result in slower growth in benefits over time.
Council of Seniors is Here to Help Older Americans
The Council of Seniors believes Social Security cost-of-living adjustments (COLAs) have been letting seniors down for years. We are working to get Congress to enact The SAVE Benefits Act. This bill directs the Department of the Treasury to disburse a payment equal to 3.9% of the average amount of annual benefits to certain individuals. If it passes, $581 will be returned to eligible seniors.
Sign our petition right now to show you’re on board with our effort.