by RetireSafe President Michelle Plasari

“The only shocking thing about today’s Social Security Trustees' report is the glaring lack of congressional action to shore up America’s retirement program. The problem is not a new one. Experts have warned year after year that Social Security cannot sustain itself in the face of the looming retirement of the baby-boomers. Now in just 9 short years Social Security will pay out more than it receives in revenue. Today, the Trustees sent a dire warning to older Americans – be prepared for benefit cuts of up to 20%.

In a time where our seniors are struggling to make ends meet, Presidential candidates and Congress should step up and do the right thing – guarantee the benefits of today’s seniors and explore the options for giving younger workers more choices and control over their retirement future.”

Highlights of the 2008 Social Security Trustees' Report

1. Social Security will begin paying out more in benefits than it takes in from payroll taxes in 2017 – just 9 years from now.
2. Permanently addressing Social Security’s funding shortfall would require huge tax increases – from 12.4% to 15.6% -- or an immediate benefit cut of 20%.
3. Beginning in 2017 the Social Security Trust Fund will have to begin cashing in the more than $2 trillion in IOUs it has written itself over the years. That money has long been spent on other government programs.
4. By 2041, the IOUs will be exhausted and Social Security will no longer be able to pay promised benefits.
5. The Presidential candidates have proposed vague solutions including raising taxes, cutting benefits, increasing the retirement age, subjecting more of workers' income to Social Security payroll taxes, and allowing individual accounts on top of Social Security – none have detailed plans.