"Social Security's Old-Age and Survivors Insurance (OASI) Trust Fund will run out of money in 2035, according to most estimates. It will not really run out. Its ability to pay 100% of its obligation will drop, probably to 77%. This will ruin the lives of millions of seniors who count on the payments for a large part, if not all, of their income."
"Among ideas about how full Social Security payments could be extended beyond 2035 is to push out the age at which people can be paid. People who take benefits when they turn 62 would not be able to take them until they reach age 64. Those who take full benefits at 67 could not get them until they turn 69. People who delayed until 70 to get higher benefits could not take them until they are 72."
"Another option is to suspend COLA completely. Retirees would absorb the effect of inflation. The problems with Social Security would be balanced on the back of their incomes. Yet another alternative is to increase what people pay into Social Security. Today, this is 6.2% of wages up to a total annual income of $176,100. The top limit could also be higher, perhaps up to $250,000."
Social Security's OASI trust fund is projected to be depleted in 2035, reducing benefit payments to roughly 77% of scheduled amounts. Faster-than-expected COLA increases could move depletion earlier. Options to extend full payments include raising the earliest and full retirement ages, suspending COLA, raising payroll tax rates, and increasing or eliminating the payroll tax wage cap. Another approach is means-testing benefits by reducing or eliminating payments for retirees with high active and passive income. U.S. life expectancy has stagnated over the last decade and fell during 2020–2022, complicating proposals that rely on longer lifespans.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]