According to a newly released report, there is a looming projection of a considerable decline in Social Security benefits expected to occur by 2033.
A new report shows an enormous cut in Social Security benefits (Photo: International Student Portal)
New Report Shows an Enormous Cut in Social Security Benefits by 2033
According to the article from Entrepreneur, a report by the Committee for a Responsible Federal Budget predicts that the Social Security program’s funding from payroll taxes will not be enough to cover monthly payments for retirees. This could result in an enormous cut in social security benefits for retirees.
The report estimates that a typical dual-income couple would face an annual reduction of $17,400, equivalent to $1,450 monthly. Couples who earned more throughout their careers might experience a cut of up to $23,000. On the other hand, those who earned less could see a more significant decrease of about $10,600, representing a larger portion of their income.
Enormous Cut in Social Security Benefits Will Continue if Lawmakers Will Not Implement Changes
According to the Fiscal Times, the Old Age and Survivors Insurance Trust Fund of Social Security is projected to deplete its reserves in the next ten years. To avoid potential benefit level adjustments, policymakers must implement changes.
In 1983, the benefits program underwent significant changes to ensure its long-term financial viability. These changes included gradually increasing the retirement age from 65 to 67, introducing income taxation on a portion of benefits for high-earning recipients, raising payroll tax rates for employers and employees, bringing federal employees into the program, and adjusting the cost-of-living allowances.
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