Social Security cuts could be coming soon — here’s who will be affected

social security program That’s expected to end within a decade as a result of slowing economic growth — and today’s youngest retirees could be among the first in the country to see benefits cut.

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New findings from the Social Security and Medicare Trustees report show Entitlement program faces bankruptcy By 2033, a year earlier than previously estimated, the acceleration toward bankruptcy is largely the result of a 3% decline in GDP and labor productivity over the next decade.

The report shows that unless major changes are made before 2034 to shore up trust funds, more than 66 million Americans will see a reduction in benefits of between about 23% and 25%.

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The Committee for a Responsible Federal Budget (CRFB) said in a recent analysis, “The United Trust Fund will be bankrupt by 2034, when today’s 56-year-olds reach full retirement age and today’s youngest retirees are 73.” Will happen.” “Upon bankruptcy, all beneficiaries would face a 20 per cent cut in board profits.”

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Over the next 75 years, benefit cuts will get more severe: Social Security recipients will face a 26% cut across the board, according to the CRFB.

“The Social Security program is only 11 years away from bankruptcy, the bankruptcy of the aging program is only a decade away,” the group said. “Action must be taken soon to prevent overall benefit cuts for many current and future beneficiaries.”

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Treasury Secretary Janet Yellenwho lead the Social Security and Medicare trustees, stressed the need to strengthen both Medicare and Social Security funds in a statement Friday.

“Social Security and Medicare are the two foundational programs older Americans rely on for their retirement security,” he said in a statement. “The Biden-Harris Administration is committed to ensuring the long-term viability of these important programs so that retirees can continue to enjoy their hard-earned benefits.”

The program’s future has emerged as a contentious issue between Republicans and Democrats, with President Biden accusing GOP lawmakers of slashing funding for Medicare and Social Security during his tenure. State of the Union Address.

Republicans have repeatedly pushed back on that claim, Insisted that they do not want to cut funding for any entitlement programs.

Biden proposed raising the Medicare tax on annual income above $400,000 from 3.8% to 5% in his budget proposal earlier this month. They also closed a loophole used by business owners and high earners to shield some of their income from additional taxes.

The White House estimated that the released changes would extend the Medicare trust fund for an additional 25 years, “beyond 2050.”

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Proposals are not likely to be of much benefit Support in deeply divided CongressAnd it faces almost certain disapproval from Republicans who won control of the House last year.

The president did not address the looming Social Security bankruptcy in his budget.