NEW YORK, Aug. 14, 2016 /PRNewswire-USNewswire/ -- New analysis conducted by AARP shows that 10.4 million workers across New York who are paying into Social Security today stand to lose 25 percent of their benefits if the President and Congress don't act.
While the revenue shortfall faced by the Social Security system that could result in these cuts is not imminent, in June, the Social Security Trustees reported that the trust fund would run dry in 2034. After that time, across-the-board cuts of nearly 25 percent would take effect if no action is taken.
AARP's analysis coincides with Social Security's 81st birthday today, August 14. Here is a glimpse of what a 25-percent cut would mean to future retirees in New York:
- The average annual family income of retirees would plunge by $4,200. For many state residents, losses would be much higher.
- The poverty rate of older New Yorkers would skyrocket by 63 percent. Some 197,800 additional seniors would be pushed into poverty.
- New Yorkers typically spend $6,900 a year on groceries, $4,700 a year on utilities, and $7,400 on health care. A Social Security benefit cut of nearly 25 percent would force households to make painful choices about what to buy and what to do without – at a time when the cost of necessities like food and prescription drugs continues to rise.
"This snapshot of the potential effects of inaction on future generations makes it abundantly clear that Social Security needs to be a top priority in the presidential debate," said Beth Finkel, State Director of AARP in New York. "Voters deserve to know how the candidates' plans will affect families, what those plans will cost and how they'll get it done.
"Doing nothing is not an option. The question is how long will our leaders wait to act. The presidential candidates need to show they can lead on this issue and give voters real answers on how they will update Social Security for future generations."
This is not just about retirees. Younger workers and current retirees' children and grandchildren will all depend on Social Security one day. The program, born in the 1930s, clearly needs to be updated for the realities of the 21st century.
That is why AARP launched Take A Stand – a national campaign focused on pressing presidential candidates to show leadership on Social Security. Hundreds of Take A Stand volunteers in New York have rallied to demand leadership on Social Security at events and debates featuring presidential and congressional candidates, urged New Yorkers to sign petitions at community events, and scheduled direct meetings with congressional hopefuls to tell the candidates that, when it comes to Social Security, soundbites aren't good enough.
AARP asked the presidential nominees what they would do to update Social Security and they responded in the AARP July Bulletin.
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SOURCE AARP New York