This Republican Social Security COLA Change Would Slash Benefits by $117 Per Month
For the past 82 years, the Social Security Board of Trustees has released a lengthy annual report that looks at the inner workings of Social Security and attempts to forecast how financially "healthy" the program will be over the short term (10 years) and long term (75 years). This report takes into account fiscal-policy changes, as well as a multitude of demographic shifts, such as birth rates and net-legal immigration.
Since 1985, every Board of Trustees report has cautioned that Social Security wouldn't generate enough long-term revenue to sustain its existing payout schedule, inclusive of annual cost-of-living adjustments (COLA). As of the 2022 report, Social Security is staring down a $20.4 trillion (and growing) cash shortfall through 2096.
If nothing is done to resolve this shortfall, an across-the-board benefit cut of up to 23% to the Old-Age and Survivors Trust Fund -- which pays more than 48 million retired workers their monthly benefit -- may be necessary by 2034.
Source Fool.com
