The biggest increase to Social Security checks since 1981 was good news for retirees. But it also served as a stark reminder that the program is expensive, with cuts to the benefits looming unless it is retooled in coming years.
Alongside news of the benefit increase last week was a tax hike for many Americans, with the wages subject to the Social Security payroll tax set to rise almost 9% next year.
Even before the cost-of-living increase was announced, Social Security’s trust fund was set to run out of reserves by 2035 if no changes are made. Historically, reforms to Social Security don’t make many people happy. So it’s worth asking: Does the program really need reform, and if it does, what changes are likely?
Social Security's Cost of Living Increase Means Benefits May Run Out Sooner
- by: Suzanne Woolley
- 10-18-2022
- Source:
Bloomberg
- 10/18/2022
Social Security by frankieleon is licensed under Flickr Flickr
Social Security by frankieleon is licensed under Flickr Flickr
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