FILE-In this photo illustration, a Social Security card sits alongside checks from the U.S. Treasury on October 14, 2021 in Washington, D.C. (Photo illustration by Kevin Dietsch/Getty Images)
The Trump administration is reportedly considering many options to avoid Social Security insolvency, which includes raising the retirement age.
When asked if he would consider raising the retirement age during a FOX News interview on Thursday, Social Security Administration Commissioner Frank Bisignano said, “I think everything’s being considered, will be considered.”
Could Social Security reach insolvency?
Why you should care:
FOX Business, citing Social Security Administration data, reported that Social Security’s two main trust funds, the Old-Age and Survivors Insurance (OASI) and Disability Insurance (DI) funds, are projected to reach insolvency by 2034.
This is partially due to the number of workers to retirees has dropped over time from 16.5 workers per retiree in 1950, to 3.3 in 1985, and 2.8 in 2013.
When the trust funds are exhausted, the Social Security program may experience an automatic benefit cut by law to match incoming payroll tax receipts unless Congress improves the program.
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Analysis from the Committee for a Responsible Federal Budget noted that insolvency would leave Social Security beneficiaries with an estimated 24% benefit cut.
FOX Business reported that Social Security’s trustees project that Congress would need to increase payroll taxes by 3.65 percentage points permanently to close the program’s 75-year funding gap.
What they’re saying:
Social Security Administration Commissioner Frank Bisignano also explained that it will take a collective effort between the Trump administration and Congress to begin the “real work” on Social Security reforms to avoid depleting funds in the program.
The Source: Information for this story was provided by FOX Business, which cites comments from a FOX News interview with Social Security Administration Commissioner Frank Bisignano and data from the Social Security Administration. This story was reported from Washington, D.C.