Social Security is facing a severe funding shortfall. The trust fund could be depleted as early as 2032. When that happens, retirement benefits will be slashed, unless the government comes up with another way to raise revenue.
As The Motley Fool explains, one possible solution would be to increase payroll taxes. This would shift the burden of funding benefits to younger generations, who still have many years of working ahead of them.
The article explains that the government might be able to save Social Security if it raises payroll taxes by 4.27 percent. Right now, employees pay 6.2 percent, but that would jump to 8.34 percent if the change is made. To put that into perspective — if you earn $60,000 per year, your payroll taxes would increase from $3,720 to over $5,000.
This could set off a dangerous cycle. According to the article, “Losing more money from your paychecks upfront could make it harder for you to save for retirement on your own, thereby increasing your reliance on Social Security in retirement.”
Council of Seniors is Here to Help Older Americans
Older Americans worked long and hard and deserve to live a comfortable retirement free from financial strain.
All of us here are Council of Seniors want to improve retirees’ financial futures — and that starts with Congress enacting The SAVE Benefits Act. The passage of this bill can make up for Social Security cost-of-living adjustments (COLAs) that have let you down in recent years. If it passes, $581 will be returned to eligible seniors.
Sign our petition right now to show you’re on board with our effort.