The Committee for a Responsible Federal Budget (CRFB) of the United States conducted a study of Social Security payments in the coming decade. The research found that married couples of older adults will receive an average discount of $17,400.00 on their total income by 2033. This decline in general payments for the 70 million Americans who have left the workforce represents 23%. The trend suggests that in 2033 the Old Age and Survivors Insurance (AHV) may no longer have the funds to cover all pensioners’ contributions.
This news is disheartening for Americans currently between the ages of 55 and 60. The study also shows that single retirees receive an average cut of $13,100.00.
Inflation may affect higher discounts
The reductions in the amounts vary depending on the amounts to be collected from social security recipients. Low-income couples will receive a $10,600.00 reduction and individuals will no longer receive $7,900.00.
Married citizens with higher salaries have a deficit of $23,000.00. While the high income single population will see a reduction of $17,300.00. Experts reported that these data were calculated for a year with a stable economy.
If an inflation crisis occurs in 2033, low-income Social Security earners will earn $8,500.00 less. Those who receive high benefits receive discounts of $18,500.00 at the same inflation values.
The Congress has proposals to reverse this unfortunate situation, but they face opposition from political parties. Measures being considered include increasing payroll taxes and raising the retirement age. The Social Security payroll tax income limit for the current year is $160,200.00.