Lawmakers Propose Means Testing Social Security as 22% Benefit Cuts Loom by 2032
Updated
Updated · AOL · Oct 2
Lawmakers Propose Means Testing Social Security as 22% Benefit Cuts Loom by 2032
3 articles · Updated · AOL · Oct 2
Summary
A 22% across-the-board Social Security cut could hit as early as 2032, prompting some lawmakers to propose reducing or eliminating benefits for wealthy retirees.
The idea aims to preserve more money for lower-income seniors because Social Security's finances are strained by a shrinking worker-to-retiree ratio and lower payroll-tax support.
Under the current system, workers earn benefits through payroll taxes on wages up to $184,500 in 2026, making means testing a sharper break from the program's entitlement structure.
Critics say stripping checks from affluent retirees would punish decades of saving and effectively turn Social Security from a universal earned benefit into a welfare-style program.
Other fixes still under discussion include raising or scrapping the wage cap, increasing the 12.4% payroll tax, or lifting the full retirement age.