Potential $17,000 annual cuts to Social Security benefits: Here’s how it will affect couples

Since from Social Security Administration Board released its April report detailing the condition of Beloved federal program, Several efforts have been made by institutions and legislators to educate the public and begin to find solutions to his impending doom. Maybe that sounded a little dramatic, but the reality is that unless we fix the situation (or at least strongly advocate for change), retiree life as we know it will soon change irrevocably.

And the worst part is that they don’t even know about it! The Peter G. Peterson Foundation released the results of a survey they conducted, which found that only 30% of Americans knew that Social Security benefits would decrease by 21% in nine years if there were no reform. In plain, actionable numbers, the cut would amount to nearly $17,000 a year for the average couple.

Although this $17,000 number is based on estimates of the projected shortfall in income the Trust will have in future years and could certainly be less, it could also be greater and the Trust could run out sooner than expected, which is why the repo from the Social Security Administration Board is expected every year.

In the same survey, after these cuts were explained, 97% of respondents agreed that it is important for leaders elected this fall to strengthen the federal retirement program so that it is fully available not only to them in now, but for future retirees.

Michael A. Peterson, CEO of the Peterson Foundation, said in a statement after the survey. “Voters understand that ‘not touching’ Social Security is not an option because automatic cuts are unacceptable and waiting only makes the problem more costly and difficult to solve.”

There seems to be a real disconnect between the lives of ordinary Americans and the problems facing the Social Security system. This is partly due to a lack of information, but it is also clear that the issue has not been made a priority by legislators and has not been properly addressed for a very long time, putting us in this dire situation.

The future of Social Security benefits

The American population has been aging for decades now, and while efforts have been made to increase the birthrate, the lack of support families receive has made it nearly impossible to have more children in some parts of the country, and it’s already starting to do so. to create a major problem with social security. There aren’t enough workers to support the system In 2022, Social Security spent $147 billion more than it brought in, and the gap only widened in 2023. This year, almost 68 million people will receive a Social Security benefit each month, and by 2035, the number of Americans age 65 and older is expected to reach 75 million.

Several solutions have been proposed to fix the system, such as raising payroll taxes, the program’s main source of funds, cutting benefits or raising the retirement age, but none of the solutions have proven to be palatable to lawmakers or citizens.

And this is not even the first time that the system needs to be maintained and repaired for its survival! Recent efforts to save it have seen the retirement age gradually rise from 65 to 67 in a bid to encourage workers to keep contributing for longer. And the situation was even more dire then, since Social Security’s insolvency was only months away instead of ten years away.

The fact that there is more time is good, as it gives more freedom to fix problems, but the overhaul the system needs is significantly greater according to the Brookings Institution, and delaying changes will only make them bigger.