The Social Security Trustee and other experts said that there will be Social Security cuts in 2034 if lawmakers will not propose an alternative.
Will There Be Social Security Cuts?
Millions of American retirees are enjoying the increase in Social Security Benefits this year. It has jumped to 8.7%, the highest so far in decades. However, Social Security Trustees and financial experts have spoken that there will be Social Security Cuts in 2034.
In a published article in The Motley Fool, around 20% of the recipients are projected to lose their Social Security Benefits. They found that the program’s trust funds will be out of money by 2034. This will lead millions of American retirees to poverty.
Moreover, this also means that millions of seniors will no longer meet their daily needs if Social Security cuts will happen. Likewise, cutting the benefits will bring financial crisis as well to the elderly or seniors.
How to Prevent Social Security Cuts?
According to a published article in Sharewise, one of the ways to avoid Social Security cuts is to increase the full retirement age. At present, the full retirement age in the country is 67 but lawmakers have proposed to increase it to 68 or 69.
Increasing the full retirement age will help shore up Social Security’s finances to a large degree. The age of 68 or 69 is a reasonable age to retire given that the life expectancy in the country has increased. However, there is a need for lawmakers to act as soon as possible to make necessary changes in the Social Security Benefits.