During the first half of 2022 the United States Social Security Administration announced that there would not be sufficient trust funds by 2034. This means that all benefit payments won’t arrive entirely after that date. The reduction in payments sent by Social Security would be about 20% if this eventually happens. But a new study asserts that this bonanza time could increase a bit more.
In any case, Social Security needs to increase its funds urgently if it does not want to get into trouble. There are solutions such as the new bill where they hope to get those funds to go way up and even increase all retirement benefits by $200. It is a risky situation to avoid at all costs.
Read more: Your Social Security benefit will last longer if you live in one of these cities
How long will the Social Security funds be increased?
According to Fox Business, this increase would be for only one year. Although it may not seem like a long time, one more year with Social Security’s funds at maximum is great news. This way many retirees will be able to collect their full SSA benefit and be able to pay all their bills, housing, food and other expenses. Anything that means such a change is always good news.
But keep in mind that after that year nothing is guaranteed anymore. Therefore, Congress and the United States Government must start making moves. If the Social Security funds cannot assure 100% of retiree payments, we may start living in a time of high precariousness, something no one really wants. Therefore, finding a solution is a must in order to avoid this situation.
Read more: New Bill could bump Social Security by 2,400$ a year to Seniors
The proposed bill to increase the trust funds
There is a bill to increase the trust funds. And not only would it do that, but it would also increase Social Security for benefit recipients by $200. This bill is still in the pipeline and nothing is certain, but if it is accepted it will become very good news for a lot of people.
In addition, this bill would only negatively affect people with the highest salaries. Any worker earning more than $250,000 a year would have to pay more money in taxes, which would directly benefit the Social Security Administration and its benefits.