With the US Government shutdown getting averted, all the latest debate of Social Security checks delay can be put to rest.
Even though this forestall is temporary, Congress will look further for a Government shutdown in the coming months.
However, before that could happen, the future of social security benefits hangs in balance.
As previously reported, Social Security will see the biggest COLA bump next year. But despite all this, a doomsday clock is ticking on Americans that rely on Social Security checks.
By 2034, the trust funds that support Social Security are projected to get depleted.
I know that’s a long way to go but what does this mean for you?
Well, if the trust funds get depleted, you can face a significant reduction in Social Security benefits by a massive 20-30%.
What Can You Do To ‘SAVE’ Your Benefits in the Future?
The Center for Retirement Research at Boston College concluded that it needs to make some changes.
These changes include modifying existing benefits such as raising taxes on Payroll, social benefits, & raising the age to get full retirement benefits.
Even though these changes are political in nature, are these realistic solutions?
Well, as per the president of the National Association of Registered Social Security Analysts Martha Sheddon, “The simplest option would be to increase what’s being paid in by the largest group of people. The cumulative effect of 176 million workers paying a tiny bit more would have a big impact.”
Eliminating the cap on payroll taxes would be another option. That means that people would pay more money in Social Security taxes up to $142,800. It is an easy way to make more money for Social Security.
Recommended Read: How New Changes Can Reduce the Retirement and Disability Benefits to 78%
Why Social Security Benefits Will Increase Next Year?
First, let me make one thing clear – The two methods for increasing yearly payments and keeping Social Security going, in the long run, are not the same.
Inflation rates from the previous year are used to determine long-term raises like the Cost of Living Adjustment, which is expected to be 6% in 2022.
Now this increase in COLA will result in the increase of social security checks by $100 per beneficiary in 2022 for seniors.
However, as for the long-term goals, sustainability is ultimately based on what congress does. If Congress wants to do something about Social Security and make it more sustainable, then they will need to come up with a plan to do that.
And when this happens, House Members would have no options left other than coming up with a suitable framework for it
If this doesn’t happen before 2034, you should be ready for a probable 20-30% reduction in social security benefits.
That’s all for now.
What do you think of this doomsday clock ticking on all the Americans?
Do let us know in the comments section given below.