Lawmakers Propose Multiple Solutions to Address Looming Social Security Funding Shortage
The Social Security Administration announced that the trust funds for old-age and survivors insurance and disability insurance are projected to run out of cash by 2032 to 2034. After this period, the program will only be able to pay approximately 78% to 83% of the promised benefits, potentially resulting in a-monthly loss of about $500 for recipients.
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Lawmakers on both sides of the aisle are discussing various reform options to ensure long-term solvency. Proposed measures include removing the wage limit on Social Security taxes, raising the retirement age, and allowing workers to invest their contributions in private accounts. Senator Bernie Moreno and Senator Elizabeth Warren have proposed eliminating the tax cap entirely. Additionally, the Social Security 2100 Act seeks to increase benefits for higher-income Americans while changing the Cost of Living Adjustment calculation from the CPI-W to the CPI-E, which is more focused on senior expenses. Several bipartisan bills have been introduced to establish commissions or processes for developing a long-term plan. Senator Thom Tillis co-sponsored the Promise Act, which aims to create a process for Congress to develop a plan to keep the program solvent for at least 50 years.
Sources
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Opinion: With the clock ticking, can Congress save Social Security?
Deseret News
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Social Security nears ‘cliffs edge’ — putting recipients at risk of losing $500 a month
New York Post