Social Security Benefits Cuts: As the 2024 election for president come near, Social Security has become the talk of the days. About 70 million Americans could lose their benefits if nothing is done about the program’s possible bankruptcy.
According to a new study by the Committee for a Responsible Federal Budget, by 2033, benefits could go down by $16,500 a year for the average couple.
In the same way, a middle-class single worker may see their benefits cut by $8,200 a year. This shows how seriously the upcoming changes to Social Security will affect people’s finances.
SSA Life Expectancy: How Long Can You Live on Social Security?
The study also thinks that Social Security won’t be fixed before its trust fund runs out in 2033, which is something that a lot of people complain about.
That being said, most people believe the problem will be solved because letting it go on would be very bad for both parties’ political careers.
Social Security Benefits Cuts
The Old-Age and Survivors Insurance (OASI) Trust Fund, which holds $2.6 trillion, is the main source for Social Security benefits. Currently, Social Security is relying on this trust fund to pay retiree benefits since payouts exceed tax revenue.
If no changes are made, it’s projected that the fund will run out by 2033. After that, beneficiaries could face an automatic 21% reduction in their monthly checks, which could have a significant impact on retirees.
Social Security September Payment: Why Some Recipients Won’t Receive Benefit Checks This Month
“The result would likely lead to a spike in poverty rates for older Americans,” Shannon Benton, executive director of the advocacy group Senior Citizens League, told CBS MoneyWatch.
“Given that low-paid workers are less likely to save for retirement compared to higher-income Americans, they are often more reliant on Social Security in their later years.”
