Social Security, a Target for Cutting Deficit

Social Security is in the spotlight as President Obama’s fiscal commission searches for ways to trim the burgeoning federal debt. But while AARP supports deficit reduction, AARP leaders and members agree that Social Security should not be targeted for benefit cuts to address a budget deficit it did not cause.

Commission member Sen. Judd Gregg, R-N.H., suggested that the program be used as a first strike at deficit reduction. Citing Social Security actuaries, he notes that, if no action is taken, the Social Security trust fund will begin to face a long-term cash shortfall by 2016. However, the program can continue to pay out full benefits until 2043, and nearly three-quarters of benefits beyond that time. Nonetheless, the system does need to be strengthened soon so that future generations will be able to rely on their promised benefits.

Social Security remains the largest source of income for almost half of retirees today, and roughly one retiree in seven counts on it as the only source of income.

AARP’s CEO, A. Barry Rand, says reducing the deficit is critical for building a stronger economy, but insists that maintaining adequate Social Security benefits for current and future retirees is essential to their financial well-being.

“Social Security is not in crisis,” Rand says, “and AARP believes that Congress should strengthen the critical benefits of the program sooner rather than later to ensure adequacy, equity and solvency for years to come.”

For more about Social Security, go to www.aarp.org/strengthensocialsecurity.