Pensions and Social Security used to create financial security for many retirees due to certainty. However, over the past 30 years, many pensions have gone by the wayside, eliminating this certainty of retirement income. Now the certainty of Social Security payments is at risk.
For retirees, the future of Social Security payments shouldn't be uncertain, yet the sustainability of promised amounts is very uncertain. The latest estimate is that Social Security benefits will be cut 22% across the board by 2032 if Congress does not take action. Since many retirees depend on Social Security payments for everyday expenses, this uncertainty is unacceptable.
Even if Congress does act, the effect on retirees may be different depending on which option eventually passes. The options include: raising the percentage for FICA tax, removing income caps for FICA, doing means testing, capping benefits or combinations of these. The difficulty for retirees is that these solutions possibly change benefits for many retirees, making the future income very uncertain.
Personally, I believe this should be the number one priority for legislation, given the broad impact it has on citizens.
This is not financial, retirement nor Social Security advice. Please consult a professional advisor.
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