Kathleen Romig, director of Social Security and disability policy at the Center on Budget and Policy Priorities, recently emphasized the need for policymakers to address Social Security's funding shortfall while protecting promises to workers and beneficiaries.
Her testimony underscored the critical importance of sustaining the program's long-term viability, according to a July 12 news release.
"Social Security is the cornerstone of U.S. economic security policy," Romig said in the release. "It is critical that policymakers fill Social Security's financing gap in a way that keeps the program's promises to workers and beneficiaries and protects people with low incomes from hardship. Despite sensational rhetoric, Social Security is not going bankrupt. However, policymakers must act to fully finance the Social Security program that people want and deserve."
During her testimony before the Senate Budget Committee, Romig underscored the significant impact of Social Security in reducing poverty and providing retirement income, the release reported. She highlighted that Social Security is not solely a retirement program, but also offers essential life insurance and disability insurance protection.
Romig further emphasized the importance of recognizing that "one in five beneficiaries receive disability benefits or are young survivors of workers who died prematurely," according to the release.
While acknowledging that Social Security is not on the verge of bankruptcy, Romig stressed the long-term financing challenge the program faces, the release said. With the trust fund reserves projected to be depleted by 2034 due to the growing number of retiring baby boomers, "though Social Security has amassed trust fund reserves of about $2.8 trillion, its costs are growing as more baby boomers retire."
She noted Social Security could still pay three-fourths of scheduled benefits by relying on current Social Security taxes, according to the release.
Romig cautioned against implementing benefit cuts, such as raising the retirement age, as these measures would disproportionately impact lower-income individuals who heavily rely on Social Security, the release said.
"It's also important to understand that benefit cuts would take many years to generate substantial savings for Social Security," she said in the release.
Instead, she advocated for primarily increasing Social Security's tax revenues to address the long-term shortfall, the release reported. Romig also emphasized the importance of considering the growing income and wealth inequality when securing Social Security's future, suggesting higher-income individuals should contribute more.
In addition to addressing the financing gap, Romig called for improving benefits for those in need, according to the release. She highlighted the persisting poverty rates among older and disabled individuals and the urgency to provide greater support to beneficiaries with the lowest incomes.
Romig also emphasized the need for policymakers to take action to fully finance and strengthen Social Security to meet the expectations and needs of the American people, according to the release.
"Now is the time to generate ideas to strengthen Social Security for generations to come," Romig said in the release.
