Some lawmakers are proposing an expansion of Social Security benefits, which could increase monthly payments for millions of retirees. The latest proposal, known as the $2,400 Expanded Social Security Act, is going through Congress.
A report from 401K Specialist wrote that the Social Security Expansion Act, which Sen. Bernie Sanders (I-VT) officially presented to Congress last week, would increase Social Security payouts by $2,400 per year and guarantee that Social Security is adequately financed for the next 75 years if enacted.
This is a representation photo showing Bernie Sanders in Vallejo CA Rally. He reintroduced the Expanded Social Security Act to the Congress. (Photo by Shelly Prevost via Wikimedia Commons)
Sanders and U.S. Rep. Peter DeFazio (D-OR) originally proposed the Social Security Expansion Act on June 9, 2022. This time, Senator Bernie Sanders has a new group of allies in the form of Senator Elizabeth Warren (D-MA), Representatives Val Hoyle (D-OR), and Jan Schakowsky (D-IL), who are all showing a renewed interest in Social Security reform amid Republican talk of proposed Social Security cuts as the United States faces its most recent debt ceiling crisis.
The expanded Social Security Act’s cosponsors included 25 Democrats from the House of Representatives and eight more senators.
Social Security Expansion Act: Is It Up?
McKnights Senior Living explained that the expanded Social Security Act of 2023 has the support of the aforementioned parliamentarians, eight other senators and more than 25 additional Democratic House cosponsors. According to Sanders, 50 significant groups also support the law.
“At a time when nearly half of older Americans have no retirement savings, and almost 50% of our nation’s seniors are trying to survive on an income of less than $25,000 a year, our job is not to cut Social Security,” Sanders said in a statement.
He continued by saying that it is the responsibility of the lawmakers to increase Social Security benefits so that every senior in America may retire with the respect they deserve and that every person with a handicap can have the security they need.
The expanded Social Security Act would increase Social Security payments by $2,400 a year and guarantee that they will be paid for about the next 70 years. An examination of the proposal the Social Security Administration prepared at Sanders’ request found that the measure would only need tax increases on American families earning $250,000 or more annually.
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Insolvent in a Decade
Despite the talk of the debt limit problem, GoBankingRates reported a few more reasons why the expanded Social Security Act is relevant. First, suppose nothing is done to strengthen the program. In that case, Citizens will cease getting their full Social Security payments in around 13 years, according to a Social Security Administration declaration in 2022.
Moreover, it occurs amid a time of historically high inflation, which significantly affects seniors living on fixed incomes—many of whom depend only on Social Security benefits—and is especially severe for them. One in seven seniors depend on Social Security for more than 90% of their income. Over half of Americans aged 55 and older have no retirement savings at all, according to a news release from Senator Sanders’ office.
By increasing each recipient’s monthly check, the expanded Social Security Act seeks to reduce the burden on their finances. As of December 2022, the average monthly Social Security payout was about $1,658, thus, a $200 increase would represent a 12% increase.
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