Apr 10, 2016 4:28 PM GMT
...as Social Security Trustee Charles Blahous describes...Social Security Old Age trust fund...Without reforms, all beneficiaries would see a cut of 21 percent...
Blahous lists nine of these difficult realities:
1. Social Security faces a large and growing financing shortfall.
2. The program's trustees have unanimously called for prompt financing reforms.
3. Literally "not to touch Social Security" would mean allowing it to become insolvent, triggering sudden, deep benefit reductions.
4. Because it's unlikely lawmakers would allow a literal "no action" scenario to suddenly slash benefit payments, the more probable consequence of a protracted "don't touch" policy would be the abandonment of Social Security's financing structure.
5. The reason Social Security faces a shortfall is that scheduled benefits substantially exceed worker contributions.
6. Social Security benefit costs are growing much faster than the economy's ability to keep pace, an unsustainable rate of increase requiring corrections.
7. Under a "don't touch" scenario the program will make mounting demands upon federal taxpayers in upcoming years.
8. Under current law younger generations will face significant net income losses through Social Security, even if they receive all scheduled benefits.
9. Currently workers can claim Social Security benefits three years younger than in FDR's time, despite lifespans having lengthened considerably since then.