By Judith Ruiz-Branch
Advocates for seniors in Wisconsin are calling on lawmakers to address a projected Social Security funding shortfall that could affect 1.3 million Wisconsinites.
The program’s main retirement trust fund could be depleted in less than seven years, according to a report from the Social Security Trustees. If it happens, retirees would face a 22% benefit cut, lowering monthly checks by about $450.
Raj Shukla, state director of AARP Wisconsin, said the program is a critical lifeline for people with disabilities and families with caregiving responsibilities.
“You just can’t underscore (enough) the ripple effects that a cut of this magnitude would have across our economy and across our community,” Shukla asserted. “As an election looms and as legislators are particularly keen to listen, tell them that you support their efforts to get together and find a solution.”
About one in five people in Wisconsin rely on Social Security benefits. Shukla added the benefits contribute about $28 billion each year to the state’s economy.
Shukla is one of about 1 million Wisconsin residents who serve as caregivers for older adults and people with disabilities. He argued benefit cuts would increase the burden on caregivers and retirees alike. Experts said Social Security helps more people stay out of poverty than any other program. Even so, about half of older adults in Wisconsin struggle to pay for basic needs.
Benefit cuts would put “a lot more strain on other retirement income sources,” Shukla pointed out.
“I think it’s important for folks in Wisconsin to know that one out of every three people who is in the private sector workforce doesn’t have access to a company retirement plan,” Shukla reported.
Shukla added AARP Wisconsin supports state legislation to supplement Social Security benefits and address retirement security gaps.
In Congress, lawmakers are weighing options such as eliminating earnings caps subject to payroll taxes or raising the Social Security payroll tax rate. Shukla noted lawmakers have been able to come together in the past to address funding issues with the program and urged Congress to start acting.
