WASHINGTON — Social Security faces a $5.3 trillion shortfall over the next 75 years, but a new congressional report says the massive gap could be erased with only modest changes to payroll taxes and benefits.
Some of the options are politically dangerous, such as increasing payroll taxes or reducing annual cost-of-living increases for Social Security recipients. Others, such as gradually raising the age when retirees qualify for full benefits, wouldn’t be felt for years but would affect millions.
Sen. Herb Kohl, chairman of the Senate Special Committee on Aging, said the small “tweaks” are all that is needed to bolster Social Security’s finances for future generations of retirees.
Currently, 53 million Americans get Social Security benefits averaging $1,067 a month. In 75 years, 122 million, or one-fourth of the population, will be drawing benefits.
On its current path, Social Security is projected to run out of money by 2037, largely because of aging baby boomers reaching retirement.
The committee is scheduled to release its report today.
