For millions of American seniors, a cut to Social Security would be devastating. Retirees have worked hard for their benefits over their lifetimes, and a cut could make it difficult for many Americans to afford what they need. In 2034, when the Social Security trust fund runs out, the program will have enough to pay about 76% of projected benefits. A 24% cut would make a significant impact for most retirees, and Congress needs to act to protect benefits.
Preparing for a Social Security Cut
USA Today has released a report detailing how seniors could prepare for a potential cut to their Social Security benefits. While it’s important that all Americans demand that Congress act before the trust fund runs out, seniors can also take this time to look at their finances.
Current beneficiaries can stress test for a benefits cut. This would involve:
- Talking with a financial advisor
- Making a budget to plan for less income
- Looking at what budgetary expenses could be cut
- Finding new sources of income to make up the difference
Ask Congress to Act
One way to protect the future of seniors’ financial security? Advocating for The COLA Act of 2021. This legislation would ensure that each year, Social Security beneficiaries receive a fair cost-of-living adjustment. For several years – 2010, 2011, and 2016 – COLAs were canceled. A guaranteed yearly increase would ensure that retirees are prepared for financial challenges like inflation or recessions. Seniors must also be reimbursed for these years of canceled COLAs – a reimbursement of $10,970.
We need to demand that Congress pass this legislation long before 2034. American seniors should never experience a severe cut to their benefits. Make your voice heard today: write, email, call, or tweet at your representatives.
And sign NORA’s online petition to ask Congress to pass legislation guaranteeing yearly benefits increases. You can also join us on Twitter and Facebook for more updates.
