The US Social Security Administration reveals that Social Security funds will run out of money by 2578. Experts urge Congress to quickly fix it. Pointing out that the elderly are the most affected. Most people after retirement rely on social security to make a living.
Trust funds of the U.S. Social Security Administration (SSA) which is used for paying social welfare payments to insured citizens It is expected to run out in 2578, and even then the fund will still be able to pay about 83% of its welfare payments on the day it runs out. But it's still in short supply. The fund administrator pointed out that Although more people are participating in the social security program Due to the strong economy low unemployment rate and wage growth is in a better direction But if Congress doesn't quickly find a solution, The money in the fund will run out.
This problem has caused great concern to the American people. Especially those who are close to retirement age. and elderly people aged 65 years and over, as they rely heavily on social security payments for living expenses. who are concerned that any changes will put their financial security at risk. And they fear that the contributions they have made over the years will be wasted and disappear.
What are US Social Security benefits?
U.S. Social Security benefits are benefits paid to citizens. Divided into 2 main parts: retirement pension and provident fund In the event that the insured person is unable to work Due to being a disabled person There is also a project for additional income from collateral. Supplemental Security Income, or SSI, provides monthly payments to disabled or elderly people with low incomes. and the death benefit program The benefits will be given to the spouse, children or parents of the insured person. In the event that the insured person dies
Becoming insured in the United States is similar to other countries around the world, where people can only obtain a Social Security number and insured card if they apply for a job and are employed. Have a bank account and pay taxes As of 2566, the Social Security Administration paid out $1.244 trillion to insured people in 2565, or equivalent to approximately 5.2% of the country's gross domestic product (GDP).
Duties of the U.S. Social Security Administration Trust Fund
The U.S. Social Security Administration trust fund will cover welfare payments. In the event that the contribution collected from the insured's tax is not sufficient By the present Insured persons must pay 6.2% in salary taxes as social security contributions and 1.45% for Medicare, the government's national health insurance program. with protection in many parts In general, Employers usually deduct and pay a combined contribution of 7.65%, butAll this Conditions may also be different for those with high incomes. This may require paying an additional 0.9% in Medicare contributions.
Funds with an expiration date
Funds of the Social Security Office The latest deadline is 2578, but welfare payments may run out sooner than that. or later than that According to the latest report, it is found that pensions and death benefits It is expected to last until 2576 and will pay 79% in that year. As for the Provident Fund for the Disabled, The full amount will be depleted until 2641, the final year of the projection period. The Medicare fund will be depleted in 2579 and is expected to be 89% payable in that year.
A big concern for the elderly
Survey results from the U.S. Census Bureau. More than 50% of the U.S. population age 65 and older has an annual income of $30,000 or less, and nearly 80% of that income comes from Social Security pensions. And the US economy is preparing to enter a new wave of an aging society.
Information from the Alliance for Lifetime Income's Retirement Income Institute. Given that more than 30 million people in the United States are of age “Baby Boomer” (Baby Boomer) This is the population born between 2489 and 2507 and will reach the retirement age of 65 years in 2567, making them the largest population of retirement age. And this population depends on social security to survive.
Business Insider analyzed data from 2566 and found that The income of seniors over 65 years of age can increase as follows:
- Social security money 79.2%
- Pension 27.9%
- Savings for after retirement 22.1%
- Salary or wages from work still being done 5.3%
- Veteran's allowance (including those who have served in the military) 4.2%
Bill Sweeney, Senior Vice President of Government Affairs for the American Association of Retired Persons (AARP) About 40% of American families with seniors age 65 and older rely on Social Security for at least half of their income, and about 20% have Social Security as their only source of income.
Problems that must be resolved quickly Before it's too late
Mr. Sweeney said. The issue of social security funds running out And reducing that payment is very scary for people. Congress has a responsibility to discuss and expedite resolution of this issue. For the benefit of all parties And the sooner it is done, the better. And the deadline may be an opportunity for comprehensive reform of the Social Security Administration's programs.
However, in order for the Social Security Office trust fund to remain available in the future. Congress may have to make some troubling choices. such as raising taxes Reducing welfare payments or a combination of both The Democrats have proposed a plan to increase taxes on the rich. To bring money to support the Social Security Fund Republicans have proposed creating a bipartisan commission to deal with the depletion of Social Security programs. But Congress has not made any decisions as of yet.
Even though Mr. Martin O'Malley, Director of the US Social Security Administration Having said that, the latest report is good news. This is because the date on which the fund will run out has been postponed for another year, from 1 to 2577, benefiting from a strong economy. Ready to say in a positive way that with a good economy Strong employment numbers and “As long as Americans across the country continue to work and pay their dues, The Social Security Office still has money to pay continuously.” However, Mr O'Malley said the matter needed to be resolved.
refer : usa.gov ,businessinsider.com ,cnbc.com
