our Chicago studios this half hour. We're looking into
Social Security. The golden years. For many older
americans aren't as bright as they once seemed.
Financial insecurity is causing hardships for a lot of
seniors. Stephanie. Liebergen t a look at the
Social Security benefit program and its impact For
decades. Americans have looked forward to a guaranteed
safety net upon retirement. In 1935, the Social
Security Act, signed by President Roosevelt promised
fixed incomes for Americans as early as age 62. This
Social Security measure gives at least some protection
To 30 millions of our citizens. The old age and
survivors. Insurance Trust fund is the largest federal
trust fund holding $2.8 trillion in reserves. It's
funded largely by taxpayer dollars. It's the tax you
see deducted from your paycheck each year, but the
future of that fund is uncertain. The latest report
from the Social Security Administration reveals
reserves for retired workers and americans with
disabilities Are expected to ru out by 2034 and the
potential effects are devastating. And exhaustion of
social security funds could mean lower retirement
payments. That combined with the impending depletion of
the Medicare funds threatens to send millions of older
Americans into poverty coming up short would also leave
many of their loved ones in jeopardy. Retirement fu
are a safety net for the dependence of retired worke
and their survivors after death. Right now, the
government is seeing more money going out than coming
in despite a surge in deaths due to the coronavirus
pandemic. The American populati is aging data from
the Census Bureau shows the number of older age adults
outpacing Children by 2034 and there aren't enough
young people entering the workforce to offset the long
term costs. These conditions are exacerbated by an
increase in retirements during the pandemic. And to
make matters worse, inflation fueled in part by labor
shortages forced the agency to issue the largest cost
of living increase in 40 years. This is probably a
temporary price increase. Somet you sort of like
you're not really getting ahead you just sort of might
be staying even and everything. But the fear isn't just
about not breaking even. It's about the livelihoods of
millions that are at stake. Well, I own my own home,
but everything was breaking and with my husband and I
couldn't afford to do it on my own with what I had made
with more than a decade Between now and the projected D
day advocas tewarned delays in legislative action could
cost us If nothing changes by 2033, social security law
would cut retirement benefits by about 20% across the
board. That would be a huge blow to more than 70% of
older Americans who depend on the fund for at least
half of their income. Several possible solutions have
been floated. One of the least favorable options is
raising the payroll tax, which currently sits at 6.2%.
Another idea is expanding social security taxes on the
wealthy. This would mean an increase or total
elimination of the taxable income limit right now, that
affects people earning more than $147,000 a year. An
increase in the retirement age is also on the table
right now. Americans born before 1937 can receive full
retirement benefits starting at 65 and it starts at
age 67. If you were born after 1960, the clock is
ticking and it's unclear if Congress will find a
solution before it's too late. Stephanie Liebergen
Newsy Washington. Let's welcome in our first guest
tonight who says there may not be a problem at all.
Nancy Altman is the President of Social Security Wo
and the author of many books on the importance of
protecting Social Security nanc Thank you for coming
on. The y thank you so much for having me the fate of
the Social Security Trust fund and ultimately, the
livelihood of millions of older americans lies now in
the hands of Congress. Are we seeing any progress on
the legislative front Absolutel I have lots of good
news. Um Social Security is an extremely um well
managed program. President Eisenhower was really
ingenious. I mean president Roosevelt was really
ingenious and what he put together and there are a
number of bills in Congress to both expand Social
Security and ensure that it can pay all benefits in
full and on meti for the foreseeable future. One of
them has actually 199 co sponsors in the House of
Representatives, you only need to pass it. It has
expansion with no cuts. What's keeping these expansion
efforts stalled in Congress. They're not really stalled.
These have been unfortunately, although I consi
these bipartisan measures, beca if you look at poll
after poll americans across the board favor expanding
Social Security, ensuring that its benefits can be paid
primarily by requiring the wealthiest to pay more to
pay their fair share um without benefit cuts. And
that's what this legislation does. Unfortunately
are no Republican co sponsors among the elected memb
of Congress, but the bill is moving forward. There have
been hearings on it and there may be a markup later
this year. We'll see and a vote in the house when it
gets to the Senate. That's another story. But it then
becomes an issue for voting in november. So is now the
time for democrats to make a push. Absolutely, they and
as I say, they, the chairman of the Social Security
subcommittee. A man by the name of john Larson from
Connecticut Has introduced this as I say, it has
199 co sponsors and he is seeking the leadership
bringing up for a vote in the house. It will then go to
the Senate, interestingly, President Biden ran on
expanding social security and requiring the wealthiest
to pay more. So the Democrats are um in agreement o
this, it's a matter of getting the leadersh tipo bring
it for a vote. One of the options floating around
20% cuts across the board. That would put millions of
Americans within inches of the poverty line. You don't
agree with this method. What do you want to see instead
You know, as important as it is to ensure that all
benefits can be paid influence on time. That's a means
to an end. The end is to pride Basic Economic
Security. Social Security ensures wages against their
loss. If you become so disabled, you no longer can wor
If you die leaving young Children, it has life
insurance protection. And if you're fortunate To live
to old age, you could live to 110 and continue to get
social security. You could outlive savings but not
social security. The one shortcoming of social security
is that its benefits are too low that. It is really
just as you say, the average benefit is just above
poverty level and many get below that. So what really
needs to happen is to expand benefits and to require
the wealthiest to pay their fair share, which they're
not doing currently. So of the options on the table,
then what is the country's best case scenario, I think
the best case scenario is what the democrats are
proposing, which is an across the board increase in
benefits, some targeted increas a more accurate cost
of living increase, a minimum benefits, so no one
retires into poverty. Caregivin credit so that when um
people take time out of the workforce,
disproportionately women to care for Children, they
receive credit towards retireme They don't take that
double hit. Um and that we require those at the top to
pay more. Most americans have their Social Security
contributions withdrawn from every paycheck all year
long. But if you're very wealthy, you stop after you
make 100 and 40 around 100 and $47,000. The proposals
are that they should pay benefits all year long as well
and pay contributions all year long as well As the
world sees it. And as news reports have laid out,
social security funds are proje to run out by 2030.
For in your book Social Security works, you write about
why that's not true. Can you walk us through this
distinction that you're making Yes. Social Security is
primarily current funded, which means the monies that
are paid today that are withdrawn from pay are used to
pay Benefits. But there is a reserve, as you said in
your introduction, there's currently a $2.9 trillion
dollars surplus. It is there to help fund the
retirement of the baby boom, which is retiring now that
that money is being um Um paid out, it's the principal
and the interest by 2030 for less. Congress acts before
them. That fund will be gone, but there will still be
enough money coming in every month To pay 75 cents on
the dollar. Now, that's not good enough. We want 100 on
the dollar. And these proposals as I talked about in
Congress will pay 100 per cent on the dollar. But it's
going to think of it as the it's over. That's the end
of social security. Social secu will be with us as
long as we want it to be there. It would take an act of
Congress for social security to disappear. The pandemic
had a significant short term impact on the trajectory
of these funds. The Social Security administration
more to come on what the long term effects will be if
there are any, What do you think the outcome is Well,
one thing that the pandemic showed, I think is the real
importance of Social Security. There were as you know,
the pandemic disproportionately hit seniors. There were
many people who felt vulnerable, Some people were
unemployed and had to claim early retirement benefits
or were unable to continue working. We had
unfortunately too many people who died. They were all
insured with Social Security to pay their survivors. We
don't know yet about long haul covid and whether that
will require disability benefits. But Social Security
was there paying those benefits for people ensuring an
keeping the economy going. Um same with Medicare. We if
we didn't have Social Security and Medicare, we would
have had to invent them. So thank goodness Preside
Roosevelt had the wisdom to do it and I hope we have
the wisdom to expand it and to um enact paid leave and
other kinds of things. So the next time we have some
crisis like the pandemic will already have in place,
all of the programs necessary to keep us secure nancy
Altman, thank you so much for your time. Thank you so
much for having me. After the break, we'll chat with a