Social Security Payments In 2035: How to Address the Looming Insolvency in SSA

Recent reports reveal that chances are Social Security payments in 2035 will deplete. In this article, read and find out what are the possible ways to address the looming insolvency in the next decade!

Addressing the Social Security Administration (SSA)’s insolvency will need either decreasing the current amount of benefits or increasing the income of SSA’s trust fund, or both. However, a Senior Pension Fellow at the American Academy of Actuaries, Linda Stone, states that the most important move to do is to make changes as soon as possible instead of waiting for the Social Security payments in 2035 to deplete.

An article in the PR Newswire states that the “Social Security Challenge” is an interactive tool newly launched by the Academy. The app would allow an individual to explore what changes would address the dwindling of the Social Security payments in 2035.

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Eliminate Shortage in Social Security Payments In 2035

According to Hulbert, an app user can select from over two dozen policies under nine different categories. As the user selects an option, the app will reveal what percentage of the Social Security’s shortage will be eliminated. For instance, increasing the payroll taxes in the Social Security while the employer matches the increase would eventually raise the employee’s share of the Social Security tax rate. Based on the app, this change would eliminate around 44% of the shortage in the Social Security payments in 2035.

In addition, gradually increasing the age of retirement will also address the shortage in the Social Security payments in 2035. This change would continue the changes enacted by the U.S. Congress in 1983. Based on the app, it would eliminate another 25% of the financial shortage. Along with the increase in the Social Security tax, both changes may eliminate up to 69%.

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