Change the cost-of-living adjustment (COLA) that increases retirees’ and beneficiaries’ current benefits (Vernon, 2023).

KN Simon

Social Security’s long-term foundation could be more promising. Social Security is also
expected to run out of its $2.8 trillion in spare cash by 2034. This funded program pays
out to the following groups: old age, Survivors, and Disability Insurance Trusts, with
payees totalling 60.5 million each month. If the program continues to serve its people, it
is believed to burn through its excess cash reserves, which could lead to benefits being
cut, averaging 21% by 2034. Not only is Social Security facing the problem of potential
depletion of funds but crises such as a falling worker-to-beneficiary ratio, rising life
expectancies, near-record low bond yields, and congressional stalemates.
On the flip side, more new workers in the labor force must be needed to replace
retiring boomers. Between 2015 and 2035, the worker-to-beneficiary ratio is forecast to
fall from 2.8-to-1 to as low as 2.1-to-1 (Hagen, 2023). In short, there will need to be
more payroll tax revenue to support the growing number of beneficiary payments
heading out. Social Security did not foresee life expectancy improving as much as they
have, resulting in longer life expectancy and allowing individuals to draw Social Security
payments for an extended period. The under-the-radar issue for Social Security has been
falling interest rates. Congress does not see a need to review the imminent

Change the cost-of-living adjustment (COLA) that increases retirees’ and
beneficiaries’ current benefits (Vernon, 2023).

Increase the average retirement age, currently 67 for people born in 1960 and
after (Vernon, 2023).

Reduce survivors’ benefits (Vernon, 2023).

Reduce benefits for future retirees (Vernon, 2023).

Require 40 years, instead of 35 years, of participation in the system to earn
full benefits (Vernon, 2023).
References
Hagen, K. (2023, May 4). Understanding social security benefits. The Motley Fool.
https://www.fool.com/retirement/social-security/
Vernon, S. (2023, March 17). To Fix Social Security, there are no easy choices, but it’s
doable. Forbes. https://www.forbes.com/sites/stevevernon/2023/03/16/fixing-socialsecurity-no-easy-choices-but-its-doable/?sh=7cec16d840b8

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