The new Social Security payments were confirmed this weekend and are intended for more than 200,000 beneficiaries. According to the Social Security Administration (SSA), a fully eligible retiree can earn up to $4,873 per month (those who wait until age 70), but a person who retires at age 67 can receive $3,822 per month.
Today, more than 70 million Americans receive retirement benefits, but that number is about to increase as new Baby Boomers are ready to start claiming their benefits.
Why Will 200,000 New Recipients Receive Social Security Checks in May?
The available SSA data shows that more and more people are adding to the mass of retirees, which creates additional pressure on Social Security coffers. For example, in the month of March, the number of people who received benefits was 72.03 million, while a month later it had increased to 72.23 million.
This implies that about 195,000 additional people became eligible for Social Security or Supplemental Security Income. In April, Social Security benefits were paid to 64.8 million people, up from 64.6 million in March.
The increase in the number of beneficiaries is due to a greater number of people choosing to retire and start receiving their benefits immediately, instead of waiting longer.
Is Social Security at Risk? The Funds Would Run out in a Decade
In addition to the increase in the number of retired workers, there are concerns about the sustainability of the Social Security system. Some financial experts have warned that the Social Security Trust Fund could be depleted by 2033, putting payments for millions of Americans at risk.
Americans often worry about the duration of Social Security funds. If no improvements are made, the trust fund could be exhausted in about ten years. Steve Goss, the SSA’s chief actuary, proposed that if this happens by 2033, the agency would only be able to pay about 80% of current profits.
Experts predict that, in the coming years, many more people will reach the typical retirement age of 65. By the end of 2024, more than 4 million Americans and qualifying residents will reach that age, which will mean more pressure on SSA funds. Although nearly 20% of older Americans are still employed, the number of retirees who rely on Social Security benefits will likely increase with the aging population.
Do People Support Cuts to Social Security Benefits?
A Morning Consult/Bloomberg poll found that 57% of voters in swing states support cutting benefits for high-income retirees to prolong the life of the Social Security fund. In addition, 77% of participants supported taxing billionaires to finance Social Security. However, many Americans are unaware of how the benefits’ system works and do not realize that the amount they could receive at a certain age is linked to average life expectancy.
Many retired workers might consider continuing to work to offset their monthly expenses. Due to the absence of a predetermined retirement age in their savings plans and their improved health status, these Americans could remain active in the workforce. In addition, policy changes affecting access to retirement funds and raising the age for full benefits from 65 to 67 could lead to more people delaying retirement.
