<body><div> CONCERNS over the future of Social Security (SS) benefits continue to rise as more than 70 million Americans rely on this critical lifeline. The trust fund reserves used to pay <a href="https://www.the-sun.com/topic/social-security/" rel="nofollow"> Social Security </a> benefits are projected to run out by 2035, according to the <a href="https://www.the-sun.com/topic/social-security/" rel="nofollow"> Social Security Administration’s </a><a href="https://www.ssa.gov/news/press/releases/" rel="nofollow noreferrer noopener" target="_blank"> annual trustees report </a> . <figure class="wp-caption alignnone" id="attachment_12525600"><img src="https://img.particlenews.com/image.php?type=thumbnail_580x000&amp;url=4AWOy8_0vhyJgw000" alt="https://img.particlenews.com/image.php?url=4AWOy8_0vhyJgw000" width="960" height="639" ><figcaption class="wp-caption-text">Social Security faces a projected shortfall by 2035, with retirees potentially receiving only 83% of their benefits unless Congress intervenes </figcaption> Getty Images - Getty </figure> While Social Security <a href="https://www.ssa.gov/policy/docs/ssb/v70n3/v70n3p111.html" rel="nofollow noreferrer noopener" target="_blank"> will still exist after 2035 </a> , the SSA estimates that without additional funding, beneficiaries will only receive 83% of their full benefits. <nbtemplate data-id="AdPlaceholder" data-content="JTdCJTdE"></nbtemplate> This has sparked increasing <a href="https://www.the-sun.com/health/mental-health/" rel="nofollow"> anxiety </a> among both current and future retirees, particularly those who depend heavily on these payments as their primary source of income. Social Security is funded primarily through payroll <a href="https://www.the-sun.com/topic/tax/" rel="nofollow"> taxes </a> . Employees and employers each contribute 6.2% of an employee’s wages — a total of 12.4% — on earnings up to $168,600 in 2024. <h2 class="wp-block-heading"> MAJOR CONCERN </h2> These contributions go into a system that pays benefits to current retirees, rather than a specific fund earmarked for each individual. While 85% of payroll tax dollars go into the Social Security trust fund, the remaining 15% is allocated to a separate fund that supports people with disabilities and their <a href="https://www.the-sun.com/topic/family/" rel="nofollow"> families </a> . <nbtemplate data-id="AdPlaceholder" data-content="JTdCJTdE"></nbtemplate> The challenge arises as the number of retirees increases and fewer workers pay into the system, leading to an eventual shortfall. Senior Citizen’s League executive director Shannon Benton exclusively spoke to The U.S. Sun on the matter. “Americans should be concerned about their nest egg,” Benton told The U.S. Sun. With the trust fund projected to be depleted in 2035, Benton stressed that relying on simple promises, like eliminating taxes on Social Security or pledges to avoid cutting benefits, won’t be enough to secure the program’s future. “The long-term viability of Social Security is a pressing issue, and voters need to hear clear plans from presidential candidates on how they’ll address this looming shortfall.” <nbtemplate data-id="AdPlaceholder" data-content="JTdCJTdE"></nbtemplate><h2 class="wp-block-heading"> IMPORTANCE OF SOCIAL SECURITY </h2> For millions of retirees, Social Security forms a vital part of their <a href="https://www.the-sun.com/topic/pensions/" rel="noreferrer noopener nofollow" target="_blank"> retirement </a> income. It’s designed to supplement personal savings and contributions to retirement plans, such as 401(k)s or IRAs, but for many, it constitutes a significant portion of their financial support. In fact, about half of all seniors receive at least 50% of their income from Social Security, according to the <a href="https://www.cbpp.org/research/social-security/top-ten-facts-about-social-security" rel="nofollow noreferrer noopener" target="_blank"> Center on Budget and Policy Priorities </a> . A 2024 survey by <a href="https://www.aarp.org/pri/topics/work-finances-retirement/social-security/social-security-medicare-public-opinions/" rel="nofollow noreferrer noopener" target="_blank"> AARP </a> found that 90% of Americans aged 50 and older consider Social Security “very important” to their financial future. <h3 class="article-boxout__headline"> HOW TO SUPPLEMENT YOUR SOCIAL SECURITY </h3><nbtemplate data-id="AdPlaceholder" data-content="JTdCJTdE"></nbtemplate> Here's how to supplement your Social Security: Given the uncertainty surrounding Social Security’s long-term future, it’s essential for workers to consider ways to supplement their retirement income. Benton recommends starting early with savings and investing in retirement accounts like 401(k)s or IRAs. <ul><li> 401(k) Plans <ul><li> A 401(k) is a retirement account offered through employers, where contributions are tax-deferred. </li><li> Many employers also match employee contributions, typically between 2% and 4% of salary, making it a valuable tool for building retirement savings. </li><li> Maxing out your 401(k) contributions, especially if your employer offers a match, should be a priority. </li></ul></li></ul><ul><li> IRAs <ul><li> An Individual Retirement Account (IRA) offers another avenue for retirement savings. </li><li> Unlike a 401(k), an IRA isn’t tied to your employer, giving you more flexibility in your investment choices. </li><li> Contributions to traditional IRAs are tax-deductible, and the funds grow tax-free until they are withdrawn, at which point they are taxed as income. </li></ul></li></ul><nbtemplate data-id="AdPlaceholder" data-content="JTdCJTdE"></nbtemplate> The program’s broad support across the <a href="https://www.the-sun.com/news/politics/" rel="nofollow"> political </a> spectrum further underscores its critical role in the retirement landscape. <h2 class="wp-block-heading"> YEARLY ADJUSTMENTS </h2> In addition to providing regular benefits, Social Security incorporates an annual <a href="https://www.the-sun.com/topic/cola/" rel="nofollow"> Cost of Living Adjustment </a> to help beneficiaries maintain their purchasing power. This COLA is calculated based on changes in the <a href="https://www.the-sun.com/topic/consumer-price-index/" rel="nofollow"> Consumer Price Index </a> , measured by the Department of Labor, from the third quarter of the previous year to the same quarter of the current year. For 2024, the COLA is set at 3.2%, translating to an average increase of $55 per check for nearly 67 million Americans. This boost began with December 2023 benefits, paid out in January 2024. <nbtemplate data-id="AdPlaceholder" data-content="JTdCJTdE"></nbtemplate><blockquote class="article__quote"> The last time Social Security faced this type of deficit, Congress responded with bipartisan legislation. <cite class="article__quote-credit theme__copy-color"> Shannon Benton executive director, Senior Citizens League </cite></blockquote><h2 class="wp-block-heading"> DIRECT APPROACH </h2> Addressing Social Security’s funding shortfall requires legislative action, and potential solutions vary. “The last time Social Security faced this type of deficit, Congress responded with bipartisan legislation,” Benton explained in an email to The U.S. Sun. “But now we need to know what today’s lawmakers plan to do. “It’s not enough to promise not to cut benefits — we need concrete proposals to protect the system for the next generation,” she added. <h2 class="wp-block-heading"> TICK-TOCK </h2> With the Social Security trust fund reserves set to run out by 2035, the program’s future is far from guaranteed. Congressional action is necessary to ensure that retirees receive their full benefits, but what that action will look like remains uncertain. As Benton highlighted, “We’re looking at a system that, while still functional, is in need of serious repairs.” The fate of millions of Americans’ nest eggs rests on the decisions made in the coming years. Whether it involves raising taxes, adjusting benefits, or a combination of both, the future of Social Security is an issue that can no longer be ignored. The <a href="https://www.the-sun.com/money/12517421/social-security-schedule-payments-september-check/" rel="nofollow"> deadline </a> to get September 2024 Social Security checks is just hours away; find out just how much you’ll get and why. Plus, beneficiaries will be <a href="https://www.the-sun.com/money/12490809/supplemental-security-income-payments-schedule/" rel="nofollow"> receiving two checks in November </a> before the year is up – find out the exact dates checks will be dropping. </div></body>

Mountain View, CA

CONCERNS over the future of Social Security (SS) benefits continue to rise as more than 70 million Americans rely on this critical lifeline. The trust fund reserves used to pay Social Security benefits are projected to run out by 2035, according to the Social Security Administration’s annual trustees report. While Social Security will still exist […]