The United States' Social Security trust fund reserves are only expected to fully cover projected payments for the next 27 years and only 75% thereafter. 12 Ways to Fix Social Security is a May 18, 2010 article published in US News and World Report which outlines some alternatives recommended to Congress by the United States Senate Special Committee on Aging, outlined in the table below.
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Recommended Solution by U.S. Senate Special Committee on Aging |
Estimated Percentage Reduction in Social Security Deficit |
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Reduce benefits for new beneficiaries, beginning in 2010, by 3% |
18% |
|
Reduce benefits for new beneficiaries, beginning in 2010, by 5% |
30% |
|
Increase the Social Security contribution rate from the current level of 6.2% to 7.3%; a worker making $43,451 in 2010 would face a tax increase of $478 per year, or $9.19 per week |
100% |
|
Increase the Social Security contribution rate from the current level of 6.2% to 7.2% in 2022, and to 8.2% in 2052 |
100% |
|
Calculate SS benefits on the highest 38 working years instead of the current 35 years |
14% |
|
Calculate SS benefits on the highest 40 working years instead of the current 35 years |
23% |
|
Reduce the annual cost of living adjustment (COLA) by1% each year |
78% |
|
Reduce the annual cost of living adjustment (COLA) by ½% each year |
40% |
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