Social Security Payments in 2035: Why Gen X, Millennials Should Be Involved With The Future of SSA

Reports say an impending shortage of the Social Security payments in 2035 is to be expected. Consequently, this shortage will have a huge impact on the Generation X, millennials, and the younger generations that come after.

The changes that the U.S. Congress might make to resolve the impending shortage of the Social Security payments in 2035 are expected to have a huge impact. This impact will not only affect the older Americans but also the Generation X, millennials, and the younger generations that will come after. This means that these individuals should be involved with issues concerning the Social Security Administration (SSA).

An article on the Committee for a Responsible Federal Budget states that the concerns about the SSA were opened up by the U.S. President Joe Biden during his State of the Union address in February. He announced that the discrepancy between revenue from the Federal Insurance Contributions Act (FICA) and benefits issued may result in a decrease in Social Security payments in 2035 by 20% to 25%. This will reportedly be possible unless the Congress makes a move to prevent this from happening by 2035.

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How will the Social Security payments in 2035 affect the Gen X and millennials?

According to Miller, the decrease in Social Security payments in 2035 will severely affect the Generation X and millennials. The Urban Institute states that 49% of those born between 1980 and 1989 will be short of the income they need for basic living expenses.

In addition, the reforms authorized by the Congress in 1983 have already incorporated a decrease in the Social Security benefits for the Generation X and millennials. The law has also gradually increased the Full Retirement Age (FRA) compared to the age of 65 before 1983. The FRA is the age when a beneficiary is eligible to receive 100% of their Social Security benefits. Every year that the FRA increases, the benefits are decreased by 6.5%.

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