America's Social Security Timebomb

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The Social Security Administration (SSA) is facing a grave insolvency threat as more Americans begin claiming their government-funded retirement benefits. In 2022, the SSA paid out retirement, survivor, and disability benefits to 70.6 million beneficiaries in the U.S., amounting to $1.3 trillion, or five percent of the 2023 GDP. The agency faces paying out more than ever due to an aging population and a funding cliff that could see benefits cut by a quarter in the next decade. The SSA's financial reserves are projected to be completely depleted by around 2033. The American Academy of Actuaries has proposed tax increases and benefit cuts as potential solutions. The enduring popularity of Social Security with voters makes it a politically sensitive issue. The growing political power of those over 65 is expected to influence lawmakers to maintain the benefits they have paid into and expect to use.

#SocialSecurity #RetirementBenefits #AgingPopulation #FundingCliff #BenefitCuts

https://www.newsweek.com/americas-social-security-timebomb-1887921