A debate over the future of Social Security is taking center stage in Washington, D.C., as lawmakers and policy groups look for ways to strengthen its long\u2011term finances.<\/p>\n
As reported by USA TODAY,<\/a> in February, the Congressional Budget Office said it\u00a0expected<\/a>\u00a0the Old-Age and Survivors Insurance Trust Fund, one of the two funds used to pay Social Security benefits, would run dry in 2032, a year earlier than budgetary analysis\u00a0estimated<\/a>.<\/p>\n When the fund is depleted, Social Security recipients in South Carolina and across the United States could see an average 28% cut to monthly retirement and survivor benefits, the Committee for a Responsible Federal Budget, a non-profit “watchdog” organization that focuses on educating the public and policymakers about fiscal policy, said.\u00a0<\/p>\n Previously, the CRFB predicted a typical couple retiring just after insolvency would face an\u00a0$18,400\u00a0cut in annual benefits.<\/p>\n “Social Security\u00a0has\u00a0been\u00a0on a\u00a0path\u00a0toward\u00a0insolvency\u00a0for\u00a0some\u00a0time\u00a0\u2013 but over the past year, politicians have made its financial condition even worse,” CRFB wrote in its report.<\/p>\n Here’s what South Carolinians need to know.<\/p>\n Will the cap on Social Security benefits change?<\/p>\n A final\u00a0proposal calls for capping the total Social Security benefit\u00a0retirees\u00a0can draw in a year.<\/p>\n Recently,\u00a0the CRFB\u00a0suggested capping benefits\u00a0at $100,000 for couples<\/a>, $50,000 for single retirees.\u00a0That cap, indexed to inflation for future years, would close\u00a0at least\u00a0one-fifth of Social Security\u2019s funding gap, the CRFB\u00a0estimates<\/a>.\u00a0\u00a0<\/p>\n Critics warn, though, that a benefit cap could cut into middle-class benefits.<\/p>\n The proposal is backed<\/a> by the CRFB, specifically advocating for\u00a0reducing the federal deficit\u00a0and improving the long-term sustainability of the U.S. budget.<\/p>\n This “Six-Figure Limit\u201d is aimed at high\u2011income beneficiaries to prevent the system from paying out exceptionally large benefits at the top end.<\/p>\n How do Social Security benefits work?<\/p>\n Social Security benefits <\/a>are calculated based on a worker’s lifetime earnings, according to the Social Security Administration. Benefits are typically computed using “average indexed monthly earnings. This average summarizes up to 35 years of a worker’s indexed earnings.<\/p>\n Lower\u2011income workers receive a larger share of their earnings back through Social Security benefits than higher\u2011income workers.<\/p>\n Travis Jacque Rose is the trending news reporter for the Greenville News, part of the USA TODAY Network. Reach him at\u00a0trose@gannett.com<\/a>.<\/p>\n