Social Security Projected Insolvency by 2032

Recently, the Social Security trustees reported the program is expected to be insolvent by 2032 , resulting in a 22% reduction in payments for Social Security recipients.   Ouch.  Congress needs to address this issue, which they've avoided even though its been known for many years.

I'm already disappointed that up to 85% of Social Security payments may be taxable (based on 1993 legislation) since we already paid income taxes before it was deducted from my paycheck.  For reference, Social Security payments were not taxable until 1983 legislation made up to 50% taxable. 

Now, I need to plan for a potential 22% cut on my Social Security payments, if Congress doesn't act.  There are number of proposals being proposed by Congressional members.  Ranging from removing the cap on income for the FICA tax to capping benefits for higher income recipients.  I prefer removing or significantly increase the income cap for the FICA tax.   I feel capping the benefits based on income is punitive for recipients who have paid into Social Security, which is effectively what a tax on Social Security benefits already does.

For reference, I don't think there is an easy or simple solution.  Unfortunately, I feel the eventual solution will have a negative impact and reduce my Social Security payments.  Another uncertainty and issue to worry about as retiree.  My backup plan will be to withdraw needed fund from IRA accounts, since I will be required to do RMDs when I turn 73.

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This is not financial, social security nor legislation advice. Please consult a professional advisor.

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