In a recent interview Senator Lindsey Graham of South Carolina said "seniors may have to take a little less and pay a little more in" when talking about the topic of social security. Of course this is a major issue for those contributing to social security and also those who are receiving income from social security.
With inflation currently sitting at 9%, the thought of receiving a smaller payment from the government or contributing more money to social security is very concerning and would impact millions of people in a very negative way. In California, the average cost of living is $46,636 per year. So if the amount dips below that for retirees, there could be a serious problem.
How Social Security Works
Social Security is a program that is operated by the United States federal government. Individuals pay taxes (called Federal Insurance Contributions Act or FICA) that go into a trust fund which then provides benefits to eligible recipients, such as those who are retired, have disabilities, or to the spouses or children of workers who have passed away.
Each year, the Social Security COLA is adjusted based on the rate of inflation. The Social Security Administration does not announce the new year’s COLA until October. So we don't know how much the amounts will change right now.
What do you think about was said by Senator Graham about Social Security?
Please let me know in the comments.
Disclaimer: Please note that this article is only for educational and informational purposes.