In recent years, financial analysts have raised concerns the Social Security trust fund will get depleted in the future where monthly benefits may have to be cut. The head actuary for the Social Security Administration (SSA) testified before a U.S. House of Representatives panel on June 13 that unless Congress takes action to bolster the fund, a cut as large as 17 percent could be made in the monthly benefit.
Beneficiaries are paid out of two funds: the Old-Age and Survivors Insurance (OASI) and Disability Insurance. When those funds are merged, it’s anticipated that by 2033, only 83 percent of what is due seniors will be payable. A possible cut of 17 percent would mean the average monthly benefit of $1,907 currently paid would be cut by $325 a month to $1,582. That represents a loss of $3,900 in annual income for the average recipient.
Stephen Goss, SSA’s chief actuary, noted that House members from both sides of the aisle have offered possible solutions. He said a list of proposals has been posted on the Social Security website. He recommended a special commission be formed to review them and reach a consensus on what solution might work best.
Council of Seniors Is Working to Enhance Social Security
Extra retirement income gives seniors more financial freedom. That’s why here at Council of Seniors, we’re dedicated to getting Congress to pass The SAVE Benefits Act. You need this legislation because the annual Social Security cost-of-living adjustment (COLA) hasn’t kept up with inflation in recent years. If we succeed, seniors will be reimbursed the $581 missing from their benefits.
Signing our petition is the first way you can help. Congress needs this wakeup call to refocus its priorities and help the growing number of Americans expecting action
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