Social Security funds could run short by 2032 : NPR
By: Scott Horsley (NPR)
S E E D E D C O N T E N T
A trust fund that helps pay Social Security benefits for more than 60 million retirees and family members is expected to run out of money in 2032.
Unless Congress makes changes by then, seniors will see an automatic cut in their monthly benefits of 22%, according to a report released Tuesday by Social Security Trustees.
"The Trustees recommend that lawmakers address the projected trust fund shortfalls in a timely way to phase in necessary changes gradually and give workers and beneficiaries time to adjust," the report says.
The forecast shows the trust fund will be exhausted three months earlier than was predicted last year. Social Security's finances are challenged by a falling birth rate, reduced immigration and the tax cut passed by the Republican Congress last year. Those moves are partially offset by stronger productivity gains.
The basic challenge for Social Security is demographic. Baby boomers are retiring at a rapid pace, and there are fewer younger workers paying into the system for every senior collecting monthly benefits.
Congress could patch the shortfall by raising taxes, reducing benefits or some combination of the two.
Otherwise, beneficiaries will see their monthly payments cut automatically.
"Nationally, the average monthly cut would total $500, which is more than what the average retired household spends on groceries each month," said a report from the Committee for a Responsible Federal Budget.
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Six years until Social Security recipients lose over a fifth of their benefits.
another social safety net republicans are willing to financially strangle ...
Not necessarily. It could just be one more government program that runs a deficit.
I don't know the solution except stop spending billions of dollars to fight a war that is useless and illegal. Stop spending billions on vanity projects. What else?
Trump’s fait accompli is doing nothing to help Americans who need help, and instead devote as much energy as possible to increasing his own wealth and just enough energy to further enriching those who don’t need it. Why would anyone expect him to take action to help anyone else?
Social Security can be made solvent indefinitely if Congress will just tax high income earners on all income instead of just the first $184,500!
Yeah....why is income above that amount not subject to FICA? I think if you make $2M a year you should be taxed to the fullest
Because it allows SS to put a cap on payment checks. As is well known, how much SS pays a person is based on their income levels while they were working but SS has a max limit on how much they will pay to a person. If they tax on all income then they also need to pay out based on that total income as well. Not saying I don't agree on removing the cap on earnings but both sides of the equation need to balance.
Lots of people don't like the idea, but IMO the rules for Social Security need to be revised.
They took money from me when I was 16 saying I would get money when I got old. Everybody who paid in and lived to SS age must be paid.