Cutting Social Security Benefits Is OK With 54% of Senators
For tens of millions of retirees, there's no program in this country more vital than Social Security. An analysis by the Center on Budget and Policy Priorities (CBPP) found that the guarantee of a monthly payout from Social Security to most seniors has pushed the elderly poverty rate below 9%. Comparatively, the CBPP estimates that senior poverty rates would be approaching 41% without the aid of monthly Social Security income.
However, Social Security's importance hasn't necessarily translated into the program being on a solid foundation. A combination of factors that includes the ongoing retirement of baby boomers and increased longevity (especially for wealthy retirees) is expected to weigh on Social Security in the years to come. Should nothing be done by Congress to resolve an estimated $12.5 trillion budget shortfall over the next 75 years, current and future retirees could face a reduction in their benefits of up to 23%.
It's up to lawmakers on Capitol Hill to fix this mess, but they've been largely at odds with one another over how best to do it.
Source: Fool.com
