$18K In Social Security, Medicare Benefits At Risk For NJ Retirees, New Study Says
Retirement for many Americans might look very different in less than 10 years.According to a new report from the bipartisan nonprofit think tank, Committee for a Responsible Federal Budget (CRFB), medium-income retirees are set to lose $18,100 in benefits as Social Security and Medicare trust funds are nearing closer to insolvency in the not-so-distant future. The CRFB bases this on projections from Trustees within the program and their own estimates as they relate to the impact of the One Big Beautiful Bill Act, signed on July 4 by President Donald Trump.Under the law, trust funds are limited to incoming revenues once their reserves are depleted. This could equate to a 24 percent benefit slash in late 2032 for a dual-earning couple retiring at the start of 2033. The new group of retirees will also be tasked with maintaining their access to adequate healthcare due to an 11 percent reduction in Medicare Hospital Insurance. How 'Big Beautiful Bill' Could Impact Healthcare In NJAn estimated 72.5 million Americans receive retirement and disability benefits through the Social Security Administration, with 1.7 million of them in New Jersey.More drops in benefits are also expected to grow as the years go on due to the scheduled allotments outpacing the dedicated revenues that would be going towards fulfilling them. The CRFB estimates the size of the automatic benefit cuts to reach well over 30 percent by 2099.In a survey by The Senior Citizens League, a leading nonpartisan senior advocacy group, 50 percent of the close to 2,000 respondents over the age of 62 believe eliminating the cap on earnings subject to payroll taxes is the most efficient way to reform benefits. This plan was the top choice by a margin of 12 percent over the runner-up response, "Creating a fast-track process for Congress to vote on Social Security legislation." Only the first $176,100 of a worker's annual income can be taxed at the 6.2 percent Social Security payroll tax in 2025. This is then matched by employers to reach 12.4 percent on a yearly basis. Those who earn higher wages pay no tax on anything above that threshold, meaning that removing the cap would allow for more of their contributions to the system. The numbers as they relate to loss in benefits also vary when spread across age, marital status and work history. In 2025 dollars, a single-earning, medium-income couple would be estimated to lose $13,600 if they retired in January 2033. According to the CRFB, there will be an estimated 62 million retirees who will be impacted in 2032 and beyond by these reductions. MORE FROM PATCH: Social Security Retirement Age To Change In 2025: What It Means In NJThe article $18K In Social Security, Medicare Benefits At Risk For NJ Retirees, New Study Says appeared first on Across New Jersey, NJ Patch.
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