Any cuts to Social Security imposed by the Joint Select Committee on Deficit Reduction would be borne almost entirely by current Social Security beneficiaries and those who are very near retirement, a new analysis by Social Security Chief Actuary Stephen C. Goss makes clear. Three-quarters of all Social Security payments between 2012 and 2021 – the 10-year period in which the Select Committee is required to generate deficit reduction – will go to current recipients, while an additional 21 percent will go to Americans who are very close to retirement-age and will start receiving benefits between 2012 and 2019, according to the Actuary’s analysis.
The analysis highlights that there is virtually no way for the panel to use Social Security cuts to meet its target without harming current beneficiaries. Current retirees have struggled in recent years because there was no cost-of-living adjustment (COLA) in 2010 or 2011. The Social Security Administration yesterday announced a 3.6 percent COLA for 2012.
Oct 23, 2011
You Can't Cut Social Security Without Hurting Current Recipients
From a press release issued by Democrats on the House Ways and Means Committee: