Without Social Security reform Americans in retirement may lose big, report says

[Zorro]

How would you feel if you and your spouse lost $16,500 in income a year?

That's how much a typical dual-income couple is estimated to lose in Social Security benefits if they retire when the Social Security Old-Age and Survivors Insurance (OASI) trust fund is depleted in 2033, the nonprofit, nonpartisan Committee for a Responsible Federal Budget (CRFB) said in a new report Thursday. A typical single-income couple would lose $12,400, it said.

Since Social Security is currently paying out more benefits than it's collecting in payroll tax and other revenue, the program is drawing down its reserves in the OASI trust fund to cover the remaining cost of benefits. The fund only has enough reserves to cover 100% of benefits until the fund's reserves are depleted in 2033. When that happens, the law limits benefits to incoming revenue, which essentially mandates a 21% across-the-board benefit cut for the program’s 70 million beneficiaries, CRFB said.

"Former President Donald Trump and Vice President Kamala Harris have both said they would “protect” the Social Security program," CRFB said. "However, neither has put forward a plan to meaningfully do so."

https://www.usatoday.com/story/money/personalfinance/2024/09/05/social-security-reform-losses-crfb-report/75086099007/