WASHINGTON – U.S. Senator Bill Cassidy, M.D. (R-LA) made the following statement after the Trustees of the Social Security and Medicare trust funds released a report examining how much longer Social Security can operate without significant benefit cuts. The report projects that the Social Security Trust Fund will become insolvent by 2034, meaning it will not have enough money to pay full and on time benefits promised to taxpayers.
“This report is a clear warning that Social Security is on shaky ground,” said Dr. Cassidy. “Retirees who have paid into the system their entire lives will receive massive cuts to their Social Security. The longer Congress waits to act, the harder it will be to solve.”
Current law requires that the Social Security Administration cuts benefits if the trust fund were ever to reach insolvency.
Additional details of the report include:
- If nothing is done, Social Security beneficiaries face benefit cuts of 20 percent or more starting in 2035, with cuts increasing as time goes on
- Social Security needs to either cut benefits by 25 percent or increase revenue by 33 percent to gain long term stability
- Cost of Living Adjustments (COLA) are not expected to keep up with inflation
- More retirees are waiting until full retirement age at 65 to receive a full payout, rather than taking a reduced payout at 62