Newly retired couples may lose $16,900/year in Social Security in 2033
3 hours ago
- #Social Security
- #Medicare
- #Retirement Planning
- Newly retired average dual-income couples retiring in 2033 could lose $16,900 annually in Social Security benefits if Congress fails to act.
- The Social Security trust fund is projected to be depleted by 2032, leading to a 22% benefit cut, which may increase to 35% by the end of the century.
- Medicare Part A fund is also expected to be depleted around mid-2033, potentially causing an 11% cut in reimbursements to providers.
- Medicare Parts B and D premiums are rising, with Part B premiums exceeding $200 monthly in 2026 and forecasted to grow, increasing out-of-pocket costs for beneficiaries.
- A bipartisan group of senators introduced legislation to fast-track Social Security-saving bills, aiming to ensure solvency for at least 50 years through an advisory board.
- Proposed solutions to address Social Security funding include raising payroll taxes, increasing the retirement age, capping benefits, or eliminating the income cap on payroll taxes.
- Public suggestions include eliminating the Social Security income cap entirely or allowing tax-free Roth conversions in exchange for waiving future benefits.