Social Security Face Cuts Benefits in Ten Years: Report

According to the report of the new trustee Release Wednesday.

The trustee warned that the Social Security depletion date was two years higher than last year’s report, which predicts that the report will be depleted by 2035. This is partly due to bipartisan laws signed by outgoing President Joe Biden earlier this year to increase benefits for retired police, teachers and other public sector officials who do not have social security. The trustee also expects workers’ income to grow slowly over the next decade.

The trustee estimates that Medicare Trust-based financial hospital insurance will be three years ahead of 2033 (expected last year).

The nonpartisan budget regulator said Congress needs to address the imminent shortage that affects social security and health insurance in the near future to prevent the damage to welfare payments. If Social Security is insolvent, retirees will face automatic benefits cuts of 23%.

“Social Security and Medicare can’t even pay full benefits for current retirees – when today’s 59-year-olds reach full retirement age, the youngest today is at least 70,” Maya McGuineas, chairman of the responsible committee for the federal budget, said in a statement. “Where is the sense of urgency?”

Extending the life of a plan may require higher tax and benefits adjustments. Many Democrats favored the removal of payroll taxes, which limits Social Security taxes to the first $176,100 of a person’s salary.

Another expert advocates that policy makers should intervene as soon as possible. “Small adjustments can protect vulnerable retirees and retain the system,” Romina Boccia, Director of Budget and Rights Policy, Cato Institute, Written on X. “Delays guarantee steeper cuts, heavier tax and debt burdens.”