(NewsNation) — Millions of Americans could see their Social Security benefits cut in just nine years, but a recent report suggests most people don’t even know it.
new Peter G. Peterson Foundation Research It found that only 30% of Americans know that without reform, Social Security benefits would be cut by 21% over nine years.
The report said the cuts amount to about $17,000 a year for the average couple.
Of respondents who learned about the impending cuts, 97% agreed that it is important that leaders elected this fall strengthen the federal retirement system and ensure it is fully accessible.
“Voters understand that ‘no touch’ on Social Security is not an option, because automatic cuts are unacceptable and waiting will only make fixing the problem more costly and harder,” Michael A. Peterson, CEO of the Peterson Foundation, said in a statement.
A new survey finds a disconnect between Americans’ understanding of the Social Security spending crisis and the problem lawmakers continue to put off.
Due to the country’s aging population, Social Security spending currently exceeds revenues: According to the Peterson Foundation, Social Security spending will exceed revenues by $147 billion in 2022, and the gap is projected to widen to $670 billion by 2033.
This year, on average Approximately 68 million people By 2035, the number of Americans over 65 who will receive monthly Social Security benefits is expected to reach 75 million.
Congress could address the funding challenge by raising payroll taxes, which provide most of the program’s revenue, or by cutting benefits, but both options have proven politically tricky.
The last time Social Security was overhauled was nearly 40 years ago, when the federal government gradually raised the eligibility age from 65 to 67. When that happened in 1983, Social Security went bankrupt. Just a few months later.
The situation today is not as urgent, According to the Brookings InstitutionBut the changes needed now are much greater than they were then, and delaying reform will likely require even greater changes.
In May, the annual report from the Social Security and Medicare trustees brought a bit of good news: Social Security’s insolvency date was pushed back a year from previous estimates.
Nevertheless, the Social Security Board has decided that the Social Security Old-Age and Survivors Insurance (OASI) Trust Fund Go bankrupt By 2033, the program will no longer be able to cover its costs, and if no changes are made, benefits to the main Social Security trust fund would be cut by 21 percent.
The Associated Press contributed to this report.
