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A promising path to a bipartisan fix of Social Security emerges
San Diego Union-Tribune • • business
Key Points:
- Social Security faces a looming crisis as reserves are projected to be depleted by late 2032, potentially leading to a 22% cut in benefits for over 70 million retirees unless reforms are implemented.
- The Baby Boom generation's retirement beginning in 2011, combined with a significant drop in birth rates since the 1970s, has strained the worker-to-retiree ratio that funds Social Security.
- Political leaders from 1993 to 2009 treated Social Security reform as a priority, but subsequent administrations have largely stalled on addressing the issue.
- A recent survey by the Reagan National Economic Forum reveals strong bipartisan public support, including among wealthy households, for means testing Social Security benefits to limit payouts for affluent retirees.
- Means testing, which would reduce benefits based on income or wealth thresholds, is seen by experts as a promising approach to stabilize Social Security finances and avoid the impending benefit cuts.
