Updated
Updated · Yahoo! Voices · Oct 9
Cassidy Warns of 28.5% Social Security Cut, Proposes $1.5 Trillion Fund
Updated
Updated · Yahoo! Voices · Oct 9

Cassidy Warns of 28.5% Social Security Cut, Proposes $1.5 Trillion Fund

2 articles · Updated · Yahoo! Voices · Oct 9

Summary

  • Six years from now, Social Security benefits could be cut 28.5% if Congress does not act before the trust fund becomes insolvent, Sen. Bill Cassidy said.
  • Cassidy argued borrowing to cover the gap would badly damage the economy, saying Social Security's unfunded liability equals about 20% of national debt and could rise to 24%.
  • His alternative is a separate pension investment fund seeded with $1.5 trillion over five years—$250 billion annually—which he said could cover 60% to 70% of the unfunded liability over 65 to 75 years.
  • Cassidy said the plan would need bipartisan backing to clear the Senate's 60-vote threshold, and added that a 28.5% benefit cut would double elderly poverty.
  • He also said the bipartisan PROMISE Act he introduced with Sen. Dick Durbin in July is running out of time to work, though he wants to keep pursuing a broader fix.

Insights

With the trust fund depleting by 2032, what happens to older Americans if this proposed $1.5 trillion pension fund falls short?
Could a massive government investment in the stock market save your retirement, or does it risk your financial future on Wall Street?