The future of Social Security is a hot topic that has many politicians in Washington debating on what to do. But, to understand the predicament, we must understand how Social Security is managed and financed.
Read on to learn more.
Social Security’s Finances
There are two trust funds that manage and finance the Social Security program, the Old-Age and Survivors Insurance (OASI) and the Disability Insurance funds.
Of these, the OASI fund holds finances that help to pay retirement and survivor benefits. This trust fund is most often referenced when debates about the future of the Social Security program arise due to the trust’s more imminent depletion.
Future Predictions
According to 401kSpecialistMag.com, an update from the Congressional Budget Office was released. This update detailed long-term projections for Social Security. Those projections declared the trust funds will deplete by 2035. Such a depletion could result in a cut to beneficiaries’ payments, causing them to receive only 79% of their Social Security benefits.
However, as The Motley Fool reports, 62% of retirees rely on benefit payments for at least half their monthly income; decreasing this income in any capacity would force seniors to adjust their lifestyles, living without the comforts they’ve grown accustomed to.
There are several proposals to help the program. For example, three of the top proposals include raising the retirement age, increasing payroll taxes, or eliminating the taxable minimum.
Unfortunately, these solutions still won’t be enough.
Creating A More Financially Secure Future For Seniors
Many senior citizens rely on the entirety of their benefit payments. The possibility of this hard-earned income being cut is unacceptable.
To help secure a more financially secure future for senior citizens nationwide, Senior Security Alliance has created a piece of groundbreaking legislation.
The Senior Citizens Bill of Rights is essential—it ensures that senior citizens receive their full benefit payments, preventing benefit cuts. Additionally, the bill guarantees six other rights to help seniors achieve a more financially secure future.
Help us urge the politicians in Washington to pass this essential bill now.
