Social Security Benefit Cuts Loom if Lawmakers Can't Agree on Reform Plan

Social Security faces a funding shortfall and benefits may be cut by 20% in the next decade if Congress does not act.
Lawmakers like Sen. Bill Cassidy and Rep. John Larson have proposed reforms, but there is debate on the approaches.
Cassidy wants to invest some funds in the stock market to help keep up with inflation. Larson proposes tax hikes on high earners to enhance benefits.
Action is unlikely before the next presidential election due to lack of consensus.
Beneficiaries urge Congress to act soon to avoid cuts that would severely impact them and their families.

cnbc.com

Relevant topic timeline:

8/24/2023

75% of people ages 50 and up worry Social Security will run out of money in their lifetimes, survey finds

About 75% of Americans aged 50 and older worry that Social Security will run out of funding in their lifetimes, compared to 66% in 2014, according to a survey by Nationwide Retirement Institute, as concerns grow with the depletion dates of the program's funds approaching.

9/14/2023

Social Security Benefits to Increase 3.2% in 2023, But Advocates Say It's Not Enough for Seniors Facing High Inflation

Social Security recipients could see a 3.2% increase in their monthly payment next year, though advocates argue that it still falls short in preventing senior citizens from falling further behind.

9/28/2023

Social Security and Medicare Face Insolvency Within 10 Years, Forcing Benefit Cuts if Left Unaddressed

The trust funds that support Social Security payments to retirees are at risk of depletion within the next decade, leading to potential benefit cuts, while the Medicare Hospital Insurance trust fund is also projected to be tapped out, potentially affecting healthcare access; a bipartisan fiscal commission is being proposed to address these challenges.

9/30/2023

Lawmakers Call on Social Security Administration to Explain Billions in Alleged Overpayments to Elderly and Disabled

Lawmakers are calling on the Social Security Administration to address the issue of overpayments, which has left elderly, poor, and disabled recipients struggling to repay billions of dollars that they weren't entitled to receive.

10/7/2023

Social Security Benefits to Rise Modestly in 2024, Far Below 2023 Levels

Retirees will soon find out their Social Security benefits for 2024, with predictions suggesting a likely increase of around 3.2%, although the final amount may be affected by Medicare Part B premiums, which are projected to rise by approximately 9% next year.

10/9/2023

Social Security Changes Coming in 2024: Higher Earnings to Qualify, 3.2% COLA, Higher Tax Cap and Benefits

Social Security beneficiaries in 2024 can expect changes that include an increase in the income threshold required to qualify, a cost-of-living adjustment, higher Social Security tax on income, an increase in the maximum Social Security benefit, and higher income limits for early claimers.

10/12/2023

Low Social Security COLA Hurts Seniors as Inflation Remains High

Social Security beneficiaries will only receive a 3.2% cost-of-living-adjustment to their monthly checks starting in January 2024, which will likely be eclipsed by the rising prices of goods and services that they will have to pay, further exacerbating the challenges faced by seniors due to inflation.

10/15/2023

Social Security Benefits to Rise Modestly in 2024 Due to Inflation

The Social Security Administration announced a 3.2% increase in benefits for retirees in 2024, costing the government billions of dollars, in order to offset inflation and help beneficiaries cover expenses.

10/16/2023

2024 Social Security COLA Increase May Push More Seniors into Higher Tax Brackets

Social Security benefits will increase by 3.2% in 2024, potentially pushing some recipients into a higher income tax bracket and triggering benefit cuts, according to The Senior Citizens League.