When Will Social Security Be Insolvent? - CNET
Each year, the Trustees of our national Social Security system do an in-depth analysis of the program and, in particular, it’s financial condition. And for many years (decades, in fact) the Trustees have warned Congress that Social Security’s Trust Fund reserves, which amounted to nearly $2.9 trillion at the end of 2020, would be fully depleted in the mid-2030s. The Trustees most recent report last year predicted that insolvency would likely occur starting in 2035, which would require a cut of about 20% – 23% in everyone’s monthly benefit. The Trustees next report isn’t due until April 2023, but the Congressional Budget Office (CBO) recently completed its own analysis of the problem and concluded that Social Security insolvency would likely occur even sooner than the Trustees latest forecast. According to the CBO, the Social Security trust funds are likely to be depleted in 2033, two years earlier than the Trustees’ prediction, thus requiring draconian cuts to every beneficiary’s monthly payment. To say this would be catastrophic would be an understatement, because a majority of Americans rely on Social Security as a major part of their retirement income. This CNET article by Dan Avery reports on the CBO’s latest prediction, highlighting the urgent need for Congress, despite the “3rd rail” nature of the topic, to reform Social Security soon. Click here to read more.
AMAC has been at the forefront trying to strengthen Social Security by developing and proposing its Social Security Guarantee which restores the program to solvency without raising payroll taxes. AMAC has been discussing and continues to discuss this common-sense solution with Congressional Representatives in its efforts to protect America’s senior citizens who rely on Social Security. To review AMAC’s Social Security Guarantee, click here.