“There’s a little bit more breathing room, but not enough to alter the conclusion, which is Congress must act,” William Arnone, the CEO of the non-partisan National Academy of Social Insurance, told BI.
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That doesn’t mean that Social Security benefits will completely dry up by 2035. Instead, the Trustees estimate that beginning that year, 83% of benefits will be available.
“This year’s report is a measure of good news for the millions of Americans who depend on Social Security, including the roughly 50 percent of seniors for whom Social Security is the difference between poverty and living in dignity — any potential benefit reduction event has been pushed off from 2034 to 2035,” Martin O’Malley, Commissioner of Social Security, said in a statement.
The report credited a strong economy for the extra time.
“More people are contributing to Social Security, thanks to strong economic policies that have yielded impressive wage growth, historic job creation, and a steady, low unemployment rate. So long as Americans across our country continue to work, Social Security can — and will — continue to pay benefits,” he said.
Still, the uncertain fate of Social Security has worried many Americans, particularly the ones who are close to retirement, who fear changes to the program could put their financial security at risk. For example, one 63-year-old previously told BI that “everybody my age is a little worried right now” given the looming retirement crisis that Social Security won’t solve.
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There’s a growing need for federal benefits to be bolstered. According to the Census Bureau’s Population Survey, just over half of Americans over the age of 65 make $30,000 or less annually. Meanwhile, among the income that typical retirees do receive, just under 80% see income from Social Security.
The latest estimates on Social Security also come as the US economy braces for a “peak boomer” wave of new retirees. The Alliance for Lifetime Income’s Retirement Income Institute found that over 30 million boomers are set to start reaching the retirement age of 65 this year. That’s the biggest group of boomers retiring yet, and, per that analysis, many will end up having to rely on Social Security benefits to stay afloat.
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“We cannot be clearer: we WILL NOT adjust or delay retirement benefits for any senior in or near retirement,” GOP Rep. Kevin Hern, head of the Republican Study Committee, wrote in the committee’s budget proposal for 2025.
* Original Article:
https://www.businessinsider.com/when-will-social-security-benefits-run-out-retirement-crisis-boomers-2024-5?amp