The Social Security Administration released it's Board of Trustees report for 2022 last week. And you probably know what's in it.
The Social Security trust fund is expected to be able to pay full benefits for jabout 13 more years.
There will still be Social Security payroll taxes coming in, but thanks to an aging population joining the recipient rolls daily, revenue will only be able to take care of about 80% percent of benefits starting in 2035.
That means something has to be done or benefits will have to be cut in some way.
Congress doesn't have much stomach for Social Security reform. It's a political nightmare because the only real solutions are going to involve some form of tax increase and/or some reduction in benefits or eligibility. Tax options could mean higher payroll taxes or lifting the cap on income subject to the tax. Or perhaps the age when full benefits are payable could be raised or -- last resort --recipient payments could be cut. Maybe some combination will be required..
None of that is likely to win voters' hearts. But it's getting far too close to zero hour. Hard decisions will have to be made if there is any hope of maintaining full Social Security benefits.
They are going to have to fix Medicare, too. It's trust fund will run out a couple of years before Social Security's.
Leaders are elected to lead and leadership is needed now. This can't wait any longer. Congress needs to get a handle on this.