Social Security

Americans want to know Social Security will be there for them when they retire; however, according to the Social Security Administration, if Congress doesn’t act before 2035, benefits will be reduced by nearly 20 percent. There are things Congress can do. What’s your plan?

• Social Security is funded through payroll tax deductions paid by both employees and employers. In tax year 2024, payroll taxes are applied to the first $168,600 of an individual’s yearly income. (CNBC)
• Currently, the Social Security Board of Trustees projects program costs to rise by 2035 so that taxes will be enough to pay for only 75 percent of scheduled benefits. (Social Security Administration, Office of Retirement and Disability)
• Past reform efforts, such as the 1983 amendments, have not been able to solve Social Security’s long-term funding problem, which is due to a declining worker-per-retiree ratio that now stands at only 3-to-1 and is projected to fall further. (Tax Foundation)