'Progressive price indexing' is not a third way. It’s a benefit cut.
In part, that’s a good thing, because Social Security benefits cost more than the income rolling in . So far, this mismatch between the cost of benefits and revenues hasn’t had any impact on beneficiaries, because the shortfalls have been covered by the reserves in the trust fund. Those trust fund reserves, however, will be depleted in 2035 and, without legislation, revenues will be sufficient to cover only about three quarters of scheduled outlays.
Read: Many retirees can’t wait until 70 to collect Social Security benefits, but they could if they used this strategy Another “third way” example is “progressive price indexing.” It sounds like an obscure technical correction, but since wages rise faster than prices, it is a powerful mechanism to cut benefits.
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