"Bisignano added that younger generations are likely to face a different set of rules than current retirees. The Congressional Budget Office (CBO) projects that the population paying into and drawing from Social Security will rise from 342 million in 2024 to 383 million in 2054. With fertility rates low, the CBO expects immigration to account for all population growth after 2040. But Bisignano said raising the retirement age is not the only option."
"If the trust funds run dry, federal law requires Social Security to cut benefits to match incoming payroll taxes, resulting in an average 24% reduction, according to the Committee for a Responsible Federal Budget. The program's trustees estimate that Congress would need to raise payroll taxes from 12.4% to 16.05% to close its 75-year funding gap. Bisignano said officials are also considering raising the Social Security contribution cap."
Younger generations are likely to face different Social Security rules than current retirees. The CBO projects the population paying into and drawing from Social Security will rise from 342 million in 2024 to 383 million in 2054. Low fertility rates mean immigration is expected to account for all population growth after 2040. Options under consideration include raising the retirement age, adjusting the $175,000 earnings cap for benefits, and increasing the Social Security contribution cap. If trust funds run dry, federal law would cut benefits to match payroll tax receipts, averaging a 24% reduction. Closing the 75-year gap requires raising payroll taxes from 12.4% to 16.05%.
Read at www.housingwire.com
Unable to calculate read time
Collection
[
|
...
]