economy
Social Security needs money to fix its shortfall. The question is, who will pay?
Social Security's retirement trust fund may run out of money in 2032, according to the latest projections. Lawmakers have some ideas for how to fix the program.
TL;DR
- Social Security's retirement trust fund may be depleted by 2032, risking across-the-board benefit cuts.
- Lawmakers are discussing several proposals to address the funding shortfall, including creating a separate investment fund and raising taxes on high earners.
- Potential solutions must likely involve a combination of changes and require bipartisan support to pass the Senate.
- One proposed investment fund would borrow $1.5 trillion and invest it similarly to a 401(k) to generate returns.
- Another proposal suggests taxing individuals with incomes over $400,000, including investment income, to increase revenue.
- Benefit adjustments, such as capping benefits for high earners or raising the retirement age, are also being considered.
- Experts emphasize that an open debate and evaluation of a comprehensive package of reforms are necessary.