Social Security Benefits – Social Security benefits might start shrinking by 2035, according to Social Security and Medicare experts.
Over 70 million Americans rely on Social Security. But with fewer people paying into it and an aging population, the program might see cuts. The experts say that if Congress doesn’t fund the growing gap, the checks could lose value.
Future Social Security beneficiaries might get $325 less per month by 2035. Medicare could run out of funds by 2036 if Congress doesn’t act.
If Social Security funds run low, the program can only pay through incoming payroll taxes. This means benefits would be cut automatically.
Paul Spitalnic, the chief actuary for Medicare and Medicaid, said that early reforms could make the cuts smaller.
“The sooner these problems are discussed and ultimately addressed, the less significant those changes will need to be — so the earlier, certainly the better,” Spitalnic said.
Social Security Benefits
The Social Security’s Old-Age and Survivors Insurance trust fund might also run out by 2033. At that point, only 79% of scheduled benefits would be payable, according to Fox Business.
During a hearing, House Budget Committee Chairman Rep. Jodey Arrington (R-TX) said that both Democrats and Republicans must work together to solve this problem.
“My prayer is we unite, not as Republicans, not as Democrats, but as Americans,” Arrington said. “I won’t get everything I want to solve it, probably. They probably won’t get everything they want. But we must do it, or there will be an automatic cut.”