Summary
Seniors on Social Security could see a $460 monthly cut in benefits if Congress does not address a predicted shortfall in the Social Security trust fund by 2033. This would affect around 70 million people, including those receiving retirement and disability benefits. The trust fund is running out, and current worker payroll taxes would not be enough to maintain full benefits.
Key Facts
- Seniors on Social Security could face a $460 monthly cut if no action is taken.
- Without intervention, benefits could drop by about 20% in the early 2030s.
- The possible reduction would affect around 70 million Americans.
- The trust fund that helps pay for Social Security benefits is expected to run out in 2033.
- Current payroll taxes would only cover 77% of the promised benefits.
- Kevin Thompson, a CEO, suggests it is unlikely Congress will let the cuts happen due to political pressure.
- The ongoing financial issue has been known for years, but solutions have been delayed.
- Experts recommend that soon-to-be retirees also save money in other ways, like 401k or IRA accounts.
