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A Word of Caution Amid the Euphoria of a Slight Improvement
The media airwaves are awash in reports about the one-year setback in Secutiry’s point of insolvency. Good news? Yes, of course, but before we join in the giddiness, it’s important that we stay focused on the reality that the new projection, while improved from last year, still marks the cliff over which seniors will fall if no action is taken to correct the funding problems. That’s the theme of a Business Insider post by contributors Ayelet Sheffey and Juliana Kaplan reminding us that the benefits relied on by millions of seniors “might not be long-lived.”
Quoting William Arnone, the CEO of the non-partisan National Academy of Social Insurance, the Sheffey/Kaplan article explains “There’s a little bit more breathing room, but not enough to alter the conclusion, which is Congress must act.” The conclusion referenced by Arnone is the 17% benefit cut facing seniors in 2035 if no corrective action is taken and, although the percentage and date have changed, it’s not a new problem. The looming solvency has been reported annually to Congress since the 1990s, and each Congressional Session brings with it a series of legislative proposals.
Read the Sheffey/Kaplan article, posted on businessinsider.com, here.