A Social Security shortfall could slash benefits by $500 a month. Black Americans stand to lose most
The program’s retirement trust fund is projected to deplete its reserves in 2032 without action from Washington.
Social Security payments for millions of Americans are set to see a major shortfall by 2032, if elected officials in Washington, D.C., do not intervene. Black Americans, who disproportionately rely on Social Security benefits to afford their living expenses, stand to suffer most if a solution is not determined in just a few years.
The trust fund that pays out monthly checks to retirees will be depleted of its reserves in late 2032, the Trustees of the Social Security and Medicare warned earlier this summer. If Congress and the White House do not come up with a plan to prevent the looming shortfall, tens of millions of Americans who are 62 and older, as well as children and widowed spouses who get survivor benefits following the death of a family member, will see monthly payments slashed by more than 20%, or an average of about $500 a month, reports Politico.
President Donald Trump and Republican leaders in Congress have signaled no political appetite to address the looming Social Security crisis, likely leaving the matter to the next sitting president and Congress.
“Social Security isn’t just essential support for aging and disabled Americans—it’s a promise that they can age with dignity and peace of mind,” U.S. Congresswoman Ayanna Pressley (D-Mass.) tells theGrio. “While Trump and Republicans take a hatchet to safety net programs, it’s Black folks—who depend on these benefits later in life due to systemic divestment and a growing racial wealth gap—who will be hardest hit.”
Pressley added, “This is disgraceful, and Congress must protect and strengthen Social Security without delay.”
According to a study published by the Social Security Administration, Black Americans, on average, have lower earnings than the overall population. Since lifetime earnings in covered employment determine Social Security benefits, Black Americans often receive lower benefits. Other socioeconomic factors, such as racial gaps in wealth attainment, homeownership, and health disparities, result in African Americans having lower earnings, less savings, and therefore relying more on Social Security benefits to survive.
“Social Security is not just a safety net program, but to be honest with you, for millions of families, like it’s literally the floor,” said Tylik McMillan, National Director of Youth and College at the NAACP. “It’s what they rely on for them to be able to sustain themselves, be able to provide for their families, put food on the table, to be able to access their medicine, so we should be talking about how we strengthen that floor where it does not have to be the bottom line for many Americans.”
McMillan urged policymakers and lawmakers in Washington to be “intentional” about protecting and expanding the Social Security program.
“Not only are our grandparents relying on it, but the many families and many students and young people who are investing in the program don’t have that wealth to rely on,” he added.
U.S. Congresswoman Gwen Moore (D-Wis.), a member of the House Ways and Means Committee, told theGrio that Congress “can and must prevent any Social Security benefit cuts.”
“It’s a critical retirement income, especially for communities of color. The recent Social Security trustees’ report only raises the urgency for Congress to act. We can start by lifting the cap on payroll contributions, which will help protect Social Security benefits for years to come,” said Moore.
The Wisconsin lawmaker said members of Congress should not only protect Social Security benefits, which she described as a “lifeline,” but strengthen it so that it can “better serve our seniors, including Black Americans, who often receive most of their retirement income from this program and often have smaller private nest eggs, if any at all.”
Moore introduced the Social Security Enhancement and Protection Act, which would increase the special minimum benefits to help low-income workers, recognize caregiving as work, and boost benefits for the oldest seniors.
“It would also address Social Security’s financial situation and boost the Trust Fund,” she said. We need to ensure that our seniors who did a lifetime of work can retire and live in dignity.”