CHICOPEE, Mass. (WWLP) – If congress doesn’t take action, and soon, the social security trust fund could run out in 18 years.
That doesn’t mean people who depend on the benefits will get nothing. It means, their monthly allowance could be reduced.
At the current rate, by 2034 the program would have enough money to cover only 79% of promised benefits. One woman told 22News, social security was never meant to be a primary source of retirement income.
Angelina Kosloski of Erving said, “I was told in high school that it’s not going to be there, when I was there. So to make sure, I’m saving money for when I’m older because it’s not going to be there. It kind of bugs me a little bit, but I’m not going to let it get to me. I’m going to make sure I’m doing what I need to do to make sure I’m surviving when I’m older.”
Social security is made up of two trust funds; one for retirees and the other for disability. 2034 is an exhaustion date for both funds.
To maintain benefits for the next 75-years, social payroll tax may have to rise to more than 14% from a little over 12, or cut benefits by 16%.