Social Security: how much money your income can decrease if funds run out

Social Security: how much money your income can decrease if funds run out

According to estimates, full Social Security benefits could only be paid until 2035. Although there is a bill that could save things. In Globe Live Media we tell you

Estimates so far have dictated that the Social Security Administration (SSA) would no longer be able to pay full benefits by 2035. This may be variable as it will depend on what be studied in the future, but at least today, the date is that. At Globe Live Media we are going to explain how much you could lose if this happens.

The flow of money is drying up in part because the SSA is not collecting enough in taxes to cover what is currently being paid to the 70 million Americans who apply for these benefits.

According to experts, the agency began to use more money than it received 10 years ago, after a phenomenon that has been transcendental occurred: the presence of the so-called baby-boom generation.

Why isn’t enough money being raised? In part it is due to the Covid-19 pandemic. Many people have lost their jobs and that is why they are not paying their Social Security taxes. Still others have taken early retirement, which means they claim their benefits early.

If things continue in this context, and unless Congress acts and implements actions that increase the funds of the Social Security trust, retirees will be severely affected by 2035.

Whether you have already retired or will retire in the future, if the trust funds are depleted without reform, the funding will only be enough to pay 76% of the current benefits paid by now. In other words, your income is going to go down, and this represents a problem because if retirees complain that the money they get from Social Security is not enough for them, if they earn less, then less will be enough for them.

Several US leaders and representatives have spoken out against this, including Charles Blahous, who served as public trustee for Social Security and Medicare from 2010 to 2015.

In an interview with CNBC he stated that an immediate solution would be to reduce the benefits of all retirees, by 21%. And in the case of claimants who would be requesting the benefit in the future, this reduction would be 25% right from the start.

Samuel Edwards
Samuel Edwards is the name you must have heard many times while reading reports related to Finance, that's what he is good at. From Major Investments to Stock Market Updates, he got 'em all. Be ready to blow your mind by the mind-blowing reports of Finance World from Samuel Edwards.