How To Save Social Security

"At some point, Congress will need to save Social Security, or not. According to the 2025 Trustees Report, the Old-Age and Survivors Insurance (OASI) trust fund will become insolvent by 2033. The combined OASI and Disability Insurance (DI) funds will suffer that same fate in 2034. The truly frightening thing is that, according to the same report, if Congress does nothing, the situation will become catastrophic. "At that time (2034), there would be sufficient income coming in to pay 81 percent of scheduled benefits.""

"The first challenge of fixing the Social Security problem is that some group will be unhappy. Several serious proposals to address the problem have been put on the table. Among the most widely regarded is the "Fixing Social Security: Blueprint for a bipartisan solution," from Brookings, which was published late last year. Another, titled "Will Social Security Run Out?" is from the Roosevelt Institute. The Economic Policy Institute has its own."

"The Social Security tax could be increased from 12.4% to a higher rate. Depending on other changes, this might need to go up to 15%. Another option is to raise the dollar cap on what current employees pay. According to Social Security, "In 2026, the maximum amount of earnings on which you must pay Social Security tax is $184,500." This"

Social Security faces insolvency: the OASI trust fund is projected to be depleted by 2033 and combined OASI and DI by 2034. If no action is taken, incoming revenue would cover only 81 percent of scheduled benefits by 2034. Multiple policy proposals exist from institutions including Brookings, the Roosevelt Institute, the Economic Policy Institute, and Cato. Potential fixes include cutting or restructuring benefits, raising the payroll tax rate possibly toward 15 percent, and increasing the taxable earnings cap. Any chosen solution will produce politically unpopular effects for some groups and risk voter backlash.

Read at 24/7 Wall St.