Lawmakers must 'keep their options open' on Social Security reform, former Treasury Secretary Jack Lew says
The next U.S. president and candidates for Senate this November will be tasked with addressing Social Security's funding shortfall.
TL;DR
- Social Security may be unable to pay full benefits during the next presidency.
- The program's trust fund could run out in the fourth quarter of 2032, leaving 78% of benefits payable.
- Combining with the disability trust fund, full benefits could be paid until the third quarter of 2034, with 83% of scheduled benefits payable.
- Payroll taxes will continue, meaning the program will not lose its ability to pay benefits entirely.
- Former Treasury Secretary Jack Lew urges lawmakers to begin discussing and planning reforms.
- Past reforms in 1983 included taxes on benefits and raising the retirement age.
- Lew is not in favor of the U.S. government investing in stocks to address the shortfall.
- Consideration may be given to the size of the wage base and the adequacy of incoming taxes.