Social Security Benefit Cuts
May 18, 2023
Social Security has been a hot topic recently, and it is easy to understand why. You have been paying into the program for your entire career, and now it is looking more certain than ever that you may not get the return sum you were promised. According to U.S. Senator Bill Cassidy, M.D., “Social Security is going broke a year sooner than we thought.”
This shortens the insolvency timeline even more than it already was, projecting that the Social Security Trust Fund will become insolvent in 2032 and that the Medicare Trust Fund will become insolvent by 2031. This means there will not be enough money in the trust funds to pay the full promised benefits to taxpayers.
This development in the projected future of the program comes shortly after the update in February 2023 from the Congressional Budget Office. It estimated Social Security is heading toward a financial cliff in 2023, highlighting that Medicare and Social Security spending have rapidly outpaced federal tax revenues. Under the current law, Social Security beneficiaries will receive a 24% cut once the Trust Fund goes insolvent. This includes those who are already receiving Social Security checks and those who will receive them in the future.
The future of Social Security is uncertain. We understand how big of an impact this has on your retirement. Our advisors are happy to help you prepare for these upcoming changes and protect the retirement money you have worked to save. Please contact us to schedule your complimentary consultation.
We look forward to helping you!
Sources: Press Release | Press Releases | Newsroom | U.S. Senator Bill Cassidy of Louisiana (senate.gov) ; Will Social Security Run Out? Here’s What You Need To Know (cnbc.com)