The cash shortfall that Social Security is currently facing has caused lawmakers to explore several different options for ensuring that the nation’s largest social program remains solvent. The Motley Fool has put together a guide to some of the ways that lawmakers could change Social Security.
- Raising the retirement age – Lawmakers are considering raising the retirement age, which would mean that people will have to work longer before they can draw from Social Security benefits.
- Increasing taxes on high-income earners – This would mean that people who make more money would have to pay a larger percentage of their income into the Social Security program.
- Reducing Social Security benefits for high earners – This option could include limitations on how much money high earners can receive from Social Security.
- Increasing the payroll tax – This would mean that all workers, regardless of income, would pay a higher rate into the Social Security system.
If lawmakers can’t agree on a way to keep the Social Security system afloat, it could signify a major disruption for millions of Americans who rely on the benefits. By 2035, if no changes are made, Social Security beneficiaries would see a cut of at least 20 percent.
In a time of economic uncertainty and an aging population, Social Security is more important than ever. It’s up to lawmakers to come up with a plan that will ensure its solvency for years to come.
The Seniors Center’s plan to fix Social Security solvency could make a difference, but we need your help. Make your voice heard by signing our online petition today and follow us on Twitter and Facebook to become part of our community.