By Arlenys Tabare
For more than 90 years, Social Security in the United States has been guaranteeing monthly income to more than 70 million retirees; However, a new report suggests that The program is soon to become insolvent.
The main financing of the program is through payroll taxes, that is, salaries, paid by workers and employers, under the FICA and SECA laws; The money then goes into the Trust Fund, which is invested in government bonds.
So reducing benefit payments would not only affect retirees, but also survivors and disabled workers who depend on them.
Last year’s report warned that insolvency would be in 2033; However, program administrators projected that the Old Age and Survivors Insurance fund would be depleted by the end of 2032 due in part to the effects that the One Immense Stunning Bill has had on the taxation of benefits, and these projections come at a time when Social Security beneficiaries would see their monthly payments reduced by 22%.
This Tuesday the entity assured that, if it became insolvent, the SSA would only pay 78% of the benefits. Given this, Nancy Altman, president of Social Security Works, a group that defends the program, commented: “If we cut Social Security, no one will be able to retire. “We will go back to the days before Social Security, when people moved in with their adult children,” said.
For her part, Myechia Minter-Jordan, executive director of AARP, said in a statement that, “this should serve as a warning: Congress must act. Americans have worked hard and paid into Social Security all their lives, and they deserve to be able to count on it when they retire. “No family should suffer cuts to what they have earned from Social Security.”
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