Social Security's future is uncertain due to potential reserve depletion by 2035, with benefits potentially cut. Solutions include payroll tax changes, benefits, and retirement age adjustments.
(Credit: Britannica)
Social Security Challenges: There are concerns about the future of Social Security because of its funding problems. The Social Security Trust Fund may run out of reserves by 2035, according to estimates. Social Security won’t go away, but benefits might be cut when that happens. This could happen because the program would only get money for benefits from current payroll taxes, which would cover about 80% of planned payments.
You still have time to find solutions, and the deadline has been pushed back a little because of changes in the economy. To make sure that Social Security will last for a long time, lawmakers are talking about changes that could be made to payroll taxes, benefits, or the age at which people can retire.
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The result is that retirees will only receive 83% of their full benefits, a 17 percent decrease. While this may seem like a lot, Congress can easily find that additional 17% to keep things normal.
Therefore, they will probably have to raise the money by raising the Social Security payroll tax. For instance, in 2024, employers and employees deducted payroll taxes from the first $168,000 of an individual’s annual income, with Social Security tax making up approximately 12.4% of the paycheck.
Social Security is one of the few issues that both parties agree on, and both agree on how important it is to protect its future. Here is where Donald Trump and Kamala Harris stand on the issue as the 2024 election draws near.
Kamala Harris wants to keep and even improve Social Security benefits. She supports plans to bring in more money for Social Security without lowering benefits, and she wants wealthy people and big businesses to pay more into the system. Harris’s plan shows that he wants to keep and maybe even increase benefits for current and future retirees by making the system’s finances stronger.
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Donald Trump has spoken out against cutting benefits and has said in public that he wants to keep Social Security the same. He has often focused on keeping benefits the same without making middle-income people pay more in taxes. However, he hasn’t suggested any specific changes to how money is collected or how benefits are structured for 2024. His position usually focuses on keeping current beneficiaries safe and avoiding changes that could affect the incomes of retirees.
Trump, 78, is focused on preserving the current Social Security benefits without suggesting reductions or age-related adjustments because he thinks economic expansion will help meet Social Security’s funding requirements.
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