Social Security

Newsweek -   A new warning from budget experts says millions of future retirees could face steep Social Security benefit cuts, amounting to roughly $18,000 a year for some households if Congress fails to act before the program’s retirement trust fund runs out of money.

The Social Security Old-Age and Survivors Insurance (OASI) trust fund is less than seven years from insolvency, according to testimony submitted this week to the Senate Budget Committee by the Committee for a Responsible Federal Budget (CRFB). 

Under current law, insolvency would trigger an automatic 24 percent across-the-board cut in benefits once the trust fund’s reserves are depleted. 

“To put it bluntly, Social Security is going broke, and this statement suggests we need to plan for some combination of increased funding and decreased benefits,” Drew Powers, the founder of Illinois-based Powers Financial Group, told Newsweek.