The American retirement system is still in pretty good shape compared to those in other countries. But a lot of that rosy scenario relies on the assumption that lawmakers will act in the best interests of seniors.
They may well do so going forward, but the latest actions in Congress are concerning, as is the latest report from the trustees of Social Security. According to the trustees, the system is projected to run out of money to pay full benefits by early 2033 – about nine months ahead of previous estimates.
Unless Congress acts – and does so soon – the crisis will trigger benefit cuts. At the moment, Social Security says that, in about eight years, its depleted reserves will compel it to pay recipients only 77% of the scheduled benefits they would normally receive. If lawmakers continue to wait, those benefit cuts might only get larger.
This post originally appeared at U.S. News & World Report.