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WHY SOCIAL SECURITY BENEFIT CUTS ARE UNLIKELY

Will Social Security benefits for seniors be drastically cut by 2032?

It isn't likely, although the Social Security trust funds have started to dry up.

Up until 2021, Social Security took in more money than it spend and had surplus to invest.  However, in recent years it has spend more than it takes in and has had to rely upon reserves to continue paying full benefits.

Experts keep revising the date when the system will become unable to pay full benefits.  The most recent estimate indicates that will happen in 2032.

If nothing is done, there could be cuts of up to $18,000 per COUPLE for retirees in 2032 or after.  But few people think that's going to happen.

The Congress is likely to intervene and save Social Security before drastic cuts take place.  It is unlikely that Congress will allow such cuts to take place.

Social Security is "sacred" to US politicians.  Just the mention of cutting benefits (or even failing to allow an increase) is the death knell in politics.  No politician can bear the thought of facing voters after such a thing happens.

Therefore, it is likely that Congress will come up with a plan to prevent drastic cuts to Social Security beneficiaries.  The scary thing is:  Congress doesn't seem to be in any hurry to act right away.  That increases panic among those who will need Social Security as part of their retirement planning.

There are a number of things Congress could do to stave off drastic cuts. And most think it will step up to the plate.  The question is, when?

 

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