Social Security Could Face a 14% Benefit Cut

ABOUT THE EPISODE Social Security’s main trust fund could be depleted by early 2033. Without congressional action, incoming payroll taxes may be enough to cover only about 86% of scheduled benefits.

Kent Smetters, Wharton Professor of Business Economics and Public Policy and Faculty Director of the Penn Wharton Budget Model, explains what is driving the funding shortfall, why waiting makes the problem harder to solve, and what policymakers can do to strengthen the system.

He also breaks down the role of birth rates, longevity, payroll taxes, retirement age, and why younger Americans may need more time to prepare for future changes.

ABOUT THE PODCAST This Week in Business features interviews with Wharton faculty about the latest news, fascinating trends, and issues impacting both consumers and the business world. Episodes are recorded at the Wharton School and published twice per week.

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