Social Security funds could run short by 2032, program’s Trustees warn
Social Security is expected to run short of cash in less than seven years. Lawmakers need to adjust benefits or taxes before that to avoid an automatic cut in monthly benefits.
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Kevin Dietsch/Getty Images North America
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.
What stands out is the basic challenge for Social Security is demographic. That is the part worth paying attention to.
In other words the forecast shows the trust fund will be exhausted three months earlier than was predicted last year. Curious to see how this develops.
Kevin Dietsch has been vocal about this, good to see them staying on it.
Considering the basic challenge for Social Security is demographic, it raises some real questions about what happens next.
The bigger issue here is 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. That changes the calculation.
Still waiting to hear what Kevin Dietsch actually plans to do about it.
Considering social Security is expected to run short of cash in less than seven years, it raises some real questions about what happens next.
Reading that 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 — hard to argue with the logic there.
On one hand 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. But at the same time 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 detail about the forecast shows the trust fund will be exhausted three months earlier than was predicted last year is something people should sit with.
60 million. The real figures are likely much higher.
Kevin Dietsch is in a tough spot here, curious how they navigate it.
60 million — and that is probably just the official count.
The fact that social Security is expected to run short of cash in less than seven years really puts things into perspective.
The basic challenge for Social Security is demographic. Meanwhile social Security is expected to run short of cash in less than seven years.