Social Security Trust Fund Expected to be Exhausted by 2032: Time for Congress to Take Action
According to the nonpartisan Congressional Budget Office, the Social Security Trust Fund is projected to be exhausted by 2032. This means that tens of millions of senior citizens and other recipients could see their benefits cut by at least 25% unless Congress acts. President Joe Biden and House Republicans have promised not to touch Social Security in their battle over cutting spending to address the nation’s debt ceiling crisis, but President Biden has yet to lay out a plan for protecting the program.
Projections regarding the exhaustion of Social Security’s retirement and disability trust funds vary slightly in terms of timing. According to the trustees of Social Security, the system will run out of money by 2035 if Congress does not take action. In 1983, Social Security was on the brink of being able to pay out full benefits when Congress last passed a major reform. In the past, when the Democratic party had the majority in the House, they worked together with the Senate Republicans and President Ronald Reagan to implement various reforms, such as raising the payroll taxes and gradually increasing the normal retirement age from 65 to 67.
However, it’s unlikely anything will be done in the near term, in part because of the current lack of bipartisanship in Washington. Gary Engelhardt, economics professor at Syracuse University, warns that “it’s only going to be more expensive, the longer you wait,” and that “Americans have a penchant for waiting to do things politically.”
Some Americans are already claiming Social Security years before full retirement age out of fear that their benefits will be cut. With the future of Social Security uncertain, it is important for citizens to be aware of the situation and for Congress to take action in order to protect the retirement benefits of tens of millions of Americans.
0. “Social Security on a path to major benefit cuts unless Congress acts, CBO director says” Fox Business, 7 Mar. 2023, https://www.foxbusiness.com/politics/social-security-path-benefit-cuts-unless-congress-acts-cbo-director-says
1. “Not touching Social Security could lead to 20% benefit cut within a decade” KTEN, 8 Mar. 2023, https://www.kten.com/story/48514720/not-touching-social-security-could-lead-to-20-benefit-cut-within-a-decade
2. “Not touching Social Security could lead to 20% benefit cut within a decade | News Channel 3-12” KEYT, 8 Mar. 2023, https://keyt.com/news/2023/03/08/not-touching-social-security-could-lead-to-20-benefit-cut-within-a-decade/