Social Security crisis: Beneficiaries face 21% benefit cut without reforms, says CFRB

Based on the average Social Security benefit of $1,907 a month in January 2024, a 21% cut would reduce that amount by $400​

(CRFB) noted in its report that Social Security is currently paying more in benefits than it receives in payroll taxes, which is depleting the reserves in the Old-Age and Survivors Insurance (OASI) Trust Fund that allows the program to pay out full benefits to retirees.

By law, when the trust fund is depleted, Social Security can only pay out benefits equal to what it receives in payroll taxes. The program's trustees project that trust fund reserves will be tapped out in the fourth quarter of 2033, at which time today's 58-year-olds will reach the typical retirement age and today's youngest retirees turn 71.

In effect, that means there will be a mandated 21% across-the-board Social Security benefit cut for retirees starting in late 2033. That would amount to a $16,500 nominal benefit reduction for a typical dual-income couple who retired at the time of the trust fund's depletion, or a $12,400 reduction for a typical single-income couple, according to CRFB.

More

Social Security crisis: Beneficiaries face 21% benefit cut without reforms, says CFRB

A new report by the Committee for a Responsible Federal Budget finds that Social Security beneficiaries would see a 21% benefit cut when the trust fund is depleted in late 2033.

www.foxbusiness.com

 

[1LoverofGod]

They talk about depleted funds for Social Security but the Government always moves money around allocating funds from one funded program to another.
Why aren't they talking about the Billions of $$$$ that has been used for health coverage for the mass illegal immigrants that have been allowed to come into this country with open borders.
Take a look at these numbers from data on how much in Tax Payer money goes to provide healthcare for illegal immigrants. This data is from 2019, so four years later the numbers have gone up and a lot more since the 2020 open borders began....

All told, Americans cross-subsidize health care for unauthorized immigrants to the tune of $17.0 billion a year. Federal taxpayers provided $10.0 billion in subsidized care to unauthorized immigrants in 2019. The total amounts to $1,615 per unauthorized immigrant, imposing a burden of $51 per U.S. resident.

How American Citizens Finance $17.0 Billion In Health Care For Unauthorized Immigrants

TLDR: All told, Americans cross-subsidize health care for unauthorized immigrants to the tune of $17.0 billion a year.

www.forbes.com

It's okay to make sure non citizens who come here illegally get healthcare from Tax Payer money but they allow Social Security benefits that US citizens have paid into to run out and penalize Americans for them not being responsible in how our Tax money is spent?

 

[Andy C]

I never believe any numbers put forth in regards to SS being depleted. It seems every year, a new date is set when the fund will run dry, and yet here we are, long past the years “experts” said it would already be depleted.

I do feel for those whose only retirement income is SS, because even though I dont believe the numbers now, eventually, the Gov will find a way to severely damage that system.

 

[Tall Timbers]

My social security check is already down where the average would become with a 21% cut. Does that mean I don't get the cut?

 

[Andy C]

My social security check is already down where the average would become with a 21% cut. Does that mean I don't get the cut?

I dont understand your math.

 

[Baby Yoda]

I don't do maths on holidays.

 

[Andy C]

I don't do maths on holidays.

Im a little different as there are only two times I dont do math - weekdays and weekends

 

[Tall Timbers]

I dont understand your math.

It's modern math. You get the result you want... unless of course, the govmint gets the result it wants...

 

[Andy C]

It's modern math. You get the result you want... unless of course, the govmint gets the result it wants...

In all seriousness I did not understand your post number 4?

 

[Tall Timbers]

In all seriousness I did not understand your post number 4?

It was tongue in cheek, but here goes. The social security check I receive is around 20-25% less than the stated average check of $1907. Since mine is already less than or equal to the amount they'd have to reduce it to, am I exempt from the decrease?

 

[Ghoti Ichthus]

It was tongue in cheek, but here goes. The social security check I receive is around 20-25% less than the stated average check of $1907. Since mine is already less than or equal to the amount they'd have to reduce it to, am I exempt from the decrease?

I laugh because everyone's check will be decreased. Except for welfare, food stamps, etc.

Since military retirement COLA and disability COLA are tied to SS COLA, I wonder if TPTB will reduce them by 21 percent (or whatever), too