CNS News– As Discussions Surrounding Potential Social Security cuts intensify, certain states, including California, are bracing for outsized repercussions. Economists warn that without intervention, the Social Security program could face insolvency by 2033, jeopardizing the full payment of benefits to retirees.
California, with its substantial population and high number of Social Security recipients, stands to bear the brunt of any cuts to the program. Boasting over 6.2 million beneficiaries, the state hosts at least 1.3 million more recipients than other states, placing it at the forefront of potential impacts.
Furthermore, California leads in total benefit payouts, exceeding $837 million as of December 2022—twice that of any other state. Kevin Thompson, CEO of 9i Capital Group, highlights the potential consequences of cuts, including the implementation of means testing to assess eligibility for benefits.
Means testing, a measure under consideration, could result in reduced or eliminated benefits for individuals surpassing certain income thresholds. While intended to safeguard the most vulnerable retirees, this approach could prove challenging in states with high costs of living, such as California.
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Thompson underscores the precarious situation faced by California’s senior population, who contend with exorbitant living expenses even with existing Social Security benefits. The looming prospect of cuts exacerbates concerns about financial security in retirement.
While states like Florida and Texas are yet to confront comparable cost-of-living crises, New York shares California’s elevated living expenses. Seniors nationwide are already grappling with the affordability of essentials like groceries and housing, heightening anxieties surrounding potential cuts to Social Security benefits.