Reports indicate that by 2034, Social Security’s incoming revenues won’t cover all the benefits scheduled to be paid out. Trustees of the Social Security Administration project only 76% of the benefits will be covered unless changes are made by Congress soon.
Seniors who are already collecting benefits should consider new strategies in anticipation of possible changes, including cuts in benefits.
Social Security has undergone past changes to prepare for revenue shortfalls, such as raising the full retirement age, cutting benefits, or increasing payroll taxes.
For Baby Boomers, according to the article, benefit estimates still should be “on target” and that they’re “unlikely to be reduced.” However, there is no getting around cuts will take place if Congress does nothing. Financial planners recommend a stress test for possible cuts that could be phased in over time. Some money-saving lifestyle adjustments still may be wise, such as increasing personal savings or making some budget adjustments. The thought is that by making small changes now, seniors will feel fewer implications from benefit cuts later.
Following advice to take these cuts into consideration and increase your savings really has no downside. The worst case is you’ll wind up with more money than you may need. What’s not to like about that?
Council of Seniors Wants Keep Benefits Healthy
You can take steps now to maximize your retirement income, but is it enough? For a period of years, Social Security cost of living adjustments (COLAs) were far too low. Seniors deserve $581 to make up for these years. Here at Council of Seniors, we’re working hard to get Congress to pass The SAVE Benefits Act, which will reimburse seniors for this money. The truth is, it’s money you already paid into the Social Security Trust Fund, and it’s time that it came back to you.
Join us in our efforts by signing our petition to show Washington politicians how wrong it is to withhold this money.