Social Security Trustees Report: More Retirees at Risk of Benefits Cut

Saturday, 11 May 2024, 15:07

70 million retirees could face reduced Social Security payouts within 9 years if no action is taken. Latest projections show trust funds running low, potentially supporting only 79% of benefits. Government options & proposed changes in payroll tax and retirement age could help avert benefit cuts.
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Social Security Trustees Report: More Retirees at Risk of Benefits Cut

Social Security Trust Funds Depletion

The Old-Age and Survivors Insurance trust fund is projected to run out of money by 2033, potentially supporting only 79% of benefits.

Improvement in Projections

Enhanced worker productivity may increase support to 79% benefits instead of 77%, still posing risks to retirees.

Proposed Solutions

  • Payroll Tax Proposal: Imposing tax on income above $400,000 could extend trust fund life.
  • Increasing Retirement Age: A possible solution to preserve benefits for current retirees.
  • Allowing Social Security to run a deficit can buy time for program overhaul.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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