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A recent post on the Forum raised the issue of dealing with a cut in Social Security benefits – hopefully an unlikely or very temporary event. However, something still worth planning for.
If the status of SS is not fixed, around 2033 benefits could be reduced by 23-24%. The Committee for a Responsible Federal Budget projects a 24% cut by late 2032 for retirees, equating to an $18,100 annual reduction for a typical dual-earning couple retiring in 2033. That’s significant money.
Have you calculated the possible impact on your overall retirement income? Do you have a backup plan to deal with such a possibility- even if it lasted a few months?
Monthly checks began in 1940 at age 65 when the life expectancy was 61.4 for men and 65.7 for women. The average check was $22.71 if Gemini is to be believed. With that in mind, why isn’t the full retirement age indexed? (Sorry, normal retirement age. Forgot my new speak.)
I don’t know if the Congress of tomorrow will have the same motivations as ones from the past when it comes to SS. The richest amongst us casually label this program as a Ponzi scheme and fund elections on this premise.
Since we don’t have term limits in Congress, change will be slow if ever coming. Hard choices need to be made and bravery to make those changes.
Don’t we have the power to impose term limits simply by voting?
Giv