Social Security reduction factor: Flat-out cut benefits to preserve long-term payouts
Even though this is a highly unpopular option to resolve Social Security’s looming cash crunch, it’s nonetheless a Social Security reduction factor on the table.
According to the Social Security Board of Trustees report, the program has begun burning through its $2.89 trillion asset reserves, with total expenditures narrowly outpacing expected revenue. And by 2034, Social Security excess cash is expected to be completely depleted.
The good news, though, is that Social Security’s noninterest income, the taxation of benefits, and the 12.4% payroll tax on earned income ensure that it won’t go bankrupt and that payouts can continue to be made ad infinitum.
The bad news is that the current payout schedule needs to be revised. If Congress doesn’t figure out a way to raise additional revenue or cut expenditures, an across-the-board benefits cut of up to 21% may be required by 2034.
As you can imagine, no one wants to see their Social Security benefits cut, but the federal government has many options to do just that.
10 Responses
Are you fear mongering? Are you a senior! you know this first hand? Do you have a solution? If Not why are you scaring senior. You will be senior like it or not? Are you prepared?
you or such a hateful person to scare old people? What is wrong with you? out of ideas for article? Or you just a Democrate. They were the first one to try to take ss away? Tell the truth Be sure old people know this.It will last until you need SS and then gone? What will you do? better get rich quick!
It’s never been democrats that try to get rid of your social security their the ones that greated social security it’s the traitors that call themselves patriots and republicans that want to take your social security. Franklin Delano Roosevelt was the president that gave us social security a democratic president. And your republicans have been trying to get rid of it for one reason, they want to make the billionaires they work for get that money so that those billionaires can help them get richer and stay in power in Washington. People learn history so you don’t get your mind living on right wing lies.
Edith,
You immediately went to the political jibe. If you are a senior now, chances are you were part of the “Woman’s Lib,” “Free Love”, mind-expanding through drugs, etc., etc.,
Channel that inner peace, and become part of the SOLUTION!
Trump the traitor
Would it help solvency if the government were to repay the amount it has borrowed from the fund?
there is no “next” to click
If the government would stop putting their hand in Social Securities till, most of these problems would go away….I paid my whole life into this program….it is a no brainer….it is my money!
Thanks for the info. I am 75 now. do you think I will be affected by all any of these solution?
I did not notice in the plans where Congress plans to repay what they have “borrowed” through the years and not repaid. Biden/Harris recently tapped MEDICARE like it was their personal piggy bank for one of their pet projects !!!! Maybe #1 concern: PROTECT FROM POLITICIANS !!!!!!