The Social Security trust fund is facing a severe funding deficit. There may soon be no choice but to cut benefits.
According to an article by AL.com, previous projections said Social Security would be unable to pay full benefits by late 2032. Experts predicted benefits would likely be cut by as much as 24 percent, or about $500 less per month.
But a new report by the Congressional Budget Office warns that Social Security is nearing insolvency. It predicts benefit cuts will be 26 percent, or $542 a month, and increase to 40 percent by the end of the century.
To understand why this is happening, you need to understand that dedicated payroll taxes and taxes on benefits fund Social Security. The article by AL.com explains, “For the past 16 years, Social Security has paid out more than it has taken in, forcing it to dip into trust fund reserves to cover benefits. By law, Social Security can’t pay out more in benefits than it receives in revenue, so once the trust fund is gone, cuts will follow.”
Congress needs to act – and act fast – to shore up Social Security and prevent benefit cuts.
Council of Seniors is Here to Help Older Americans
All of us here at the Council of Seniors want to improve retirees’ financial futures and ensure they receive their full Social Security benefits. We are working with members of Congress to introduce the “Social Security Restitution Act.” It would provide an estimated $970 one-time payment to every retired worker receiving Social Security benefits to help offset years of inadequate cost-of-living adjustments.
Please take a moment and sign our petition today to show your support.