U.S. Sen. Bill Cassidy (R-LA) expressed concerns following a Trustees of the Social Security and Medicare trust funds report regarding potential benefit cuts.
The report projects that the Social Security Trust Fund will become insolvent by 2034, resulting in not having enough money to pay full and on-time benefits promised to taxpayers.
“This report is a clear warning that Social Security is on shaky ground,” Cassidy said. “Retirees who have paid into the system their entire lives will receive massive cuts to their Social Security. The longer Congress waits to act, the harder it will be to solve.”
The present law requires the Social Security Administration cut benefits if the trust fund were ever to reach insolvency.
Other report provisions, per officials, determined if nothing is done, Social Security beneficiaries face benefit cuts of 20 percent or more starting in 2035, with cuts increasing as time passes; Social Security needs to either cut benefits by 25 percent or increase revenue by 33 percent to gain long term stability; Cost of Living Adjustments (COLA) are not expected to keep up with inflation; and more retirees are waiting until full retirement age at 65 to receive a full payout, instead of taking a reduced payout at 62.