U.S. President Biden’s Social Security proposal aims to increase the benefits to be received despite costing the country $273 billion. Further reports say in the next 75 years, the program is also expected to have a deficit of $22.4 trillion in funding.U.S. President Joe Biden’s Social Security proposal reportedly aims to increase the benefits to be received by the program’s beneficiaries. Unfortunately, in 2017, another report from the PwC disclosed that the U.S. is estimated to reach $34.1 trillion in gross domestic product (GDP) by 2050. This suggests that the Social Security proposal would cost the country $273 billion in the future.
Nonetheless, an article in The Motley Fool states that despite the Social Security proposal, the program is not at risk of going bankrupt or becoming insolvent. Reports say that the Social Security generates around 90% of its revenue from the 12.4% of payroll taxes on earned income such as wages and salary. This suggests that as long as Americans are working and paying taxes, the Social Security will continue collecting revenue that is disbursed to qualified beneficiaries.
Social Security In the Future
According to an article in Nasdaq, what is not feasible for the Social Security is its payment schedule that includes the annual cost-of-living adjustments (COLA). The Social Security Board Trustees estimate that in the next 75 years, the program will have a deficit of $22.4 trillion in funding. In addition, the Old Age and Survivors Insurance Trust Fund (OASI) is also expected to deplete its asset reserves by the year 2033.