The Social Security program undergoes changes that impact the monthly benefits of its recipients for good or for bad. In this article, read and find out the economic impacts of Social Security cuts on individuals in the working world!
Trust Fund Deficiency
The Old-Age and Survivors Insurance (OASI) Trust Fund of the Social Security program is expected to run out of money in about a decade. Reports say when this happens, the program will have to be funded by payroll taxes only which suggests Social Security cuts of up to 77% of the current benefits at most.
According to Cariaga, a recent report from the Committee for a Responsible Federal Budget (CRFB) suggests that due to the changes, some newly retired couples could face Social Security cuts of more than $17,000 per year once the OASI Trust Fund runs out.
Increasing Retirement Age
According to Teague Beckwith, 2024 U.S. Presidential candidates Governor Ron DeSantis of Florida and former Governor Nikki Haley of South Carolina have both raised the idea of increasing the full retirement age for younger working individuals to help deal with the looming shortage in funding.
However, the Center on Budget and Policy Priorities (CBPP) states that this move would amount to extensive Social Security cuts. This is because retirees will either have to wait longer to be able to receive the full Social Security benefits or accept smaller payments for an earlier payout.