Social Security is facing a severe funding crisis. The situation has become so dire that the Committee for a Responsible Federal Budget warns that Social Security is “on a collision course toward insolvency.” When that happens, retirement benefits will be slashed by 22 percent.
According to an article by PhillyBurbs.com, the term “insolvency refers to the point when trust fund reserves are exhausted, not the complete disappearance of Social Security revenue.” Social Security will continue to collect revenue through payroll taxes. But it’s only expected to be enough to cover 78 percent of scheduled benefits.
So, what would a 22 percent cut mean to you? The Committee for a Responsible Federal Budget estimates a typical dual-earning couple could lose $16,900 annually. The article says its estimates range from $10,200 for a low-income dual-earning couple to $22,300 for a high-income couple.
Council of Seniors is Here to Help Older Americans
The Council of Seniors believes Social Security COLAs have been letting seniors down for years. 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.
Sign our petition right now to show you’re on board with our effort.