“Fixing” Social Security Might Still Negatively Affect Beneficiaries - MSN, Motley Fool
One of the most talked-about Social Security issues these days is the impending depletion of the program’s Trust Fund reserves and the effect that would have on benefits. Across-the-board cuts somewhere in the 20% (or higher) range are often cited as an expected potential, and the year 2035 has come into focus as the likely point the total depletion will be reached. Further, the workforce impacts associated with the COVID-19 pandemic are also being suggested as having the potential to aggravate the problem substantially. The persistent rallying cry is that Congress must take action to avoid this unacceptable situation.
While numerous proposals have been–and continue to be–introduced in Washington to solve the problem, it’s important to keep in mind that “fixing” the problem is generally aimed at resolving the Trust Fund depletion problem. It’s equally important, though, to understand that “fixing” the problem does not necessarily mean that the program’s benefit structure will remain intact for future beneficiaries. In a post on www.msn.com, The Motley Fool’s Christy Bieber highlights three of the most probable areas where overall benefits would be felt. In summary, they include extending the full retirement age beyond potentially to age 70, changes to a cost-of-living adjustment (COLA) formula that would slow benefit growth, and additional means testing in the program’s calculations.
Check out her post here for additional thoughts on the issue.
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