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A list of US states where seniors are most vulnerable to social security cuts
A list of US states where seniors are most vulnerable to social security cuts

Time of India

time29-05-2025

  • Business
  • Time of India

A list of US states where seniors are most vulnerable to social security cuts

Which states are vulnerable to social security cuts? Live Events Which is the most vulnerable state? Top 10 States Where Seniors Rely Most on Social Security (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Recent attacks on the Social Security Administration (SSA) by tech billionaire Elon Musk's DOGE team and certain members of the Trump administration are threatening the stability of this vital agency. These actions put at risk the financial security of millions of retired, disabled, and low-income Americans, while also disrupting the state and local economies that rely heavily on this Security's 'Old-Age, Survivors, and Disability Insurance' (OASDI) benefits represent about 5% of the nation's GDP, but they make up nearly 10% of the income that U.S. consumers can actually spend—unlike non-cash benefits or income allocated to businesses, governments, and nonprofits, which are also factored into in states such as Vermont, Oregon, and New Hampshire are among the most vulnerable to potential cuts in Social Security benefits, according to a new report from Retirement Living, reports Newsweek. The analysis highlights the states where retirees are most dependent on Social Security for basic living expenses in the report comes at a time of major restructuring within the Social Security Administration (SSA), driven by policy shifts under the Trump administration. Earlier this year, the SSA announced plans to eliminate 7,000 positions as part of a broader effort by the Department of Government Efficiency (DOGE) to reduce federal argue that these cuts could delay or disrupt access to benefits for millions of vulnerable Americans. The closure of field offices and internal departments is already making it harder for seniors and people with disabilities to get the support they need. For over 40 percent of Americans aged 65 and older, Social Security is their only source of retirement income—making the stability of those benefits crucial for states pose especially high risks to retirees, not only due to their heavy reliance on Social Security but also because of elevated living costs and limited local support services.A spokesperson for RetirementLiving told Newsweek: "Our research shows that many retirees rely on Social Security as their financial lifeline, not just a supplement. That's why older adults in some states are more at risk than others. In places with higher economic vulnerability, a large portion of the senior population simply can't afford to lose any part of their benefit."Vermont ranks as the most vulnerable state, according to the report. It has the eighth-highest cost of living in the US, a senior poverty rate of 9.6 percent, and a high incidence of Social Security ranks third on the list. Retirees there struggle to stretch an average monthly benefit of $1,979.84 in a state with the second-highest cost of living and the 20th-highest senior poverty rankings are based on multiple factors, including the percentage of seniors who depend on Social Security, the cost of living, senior poverty rates , and the prevalence of fraud related to 90.9 percent of seniors receive Social Security; the average check is $1,949.07; the cost-of-living index is Hampshire: 91.6 percent of seniors; $2,087.54 average check; cost-of-living 82.8 percent of seniors; $1,979.84 average check; cost-of-living 90 percent of seniors; $2,003.81 average check; cost-of-living York: 83.1 percent of seniors; $1,922.40 average check; cost-of-living 90.1 percent of seniors; $2,085.16 average check; cost-of-living Jersey: 85 percent of seniors; $2,087.95 average check; cost-of-living Island: 88.4 percent of seniors; $1,963.73 average check; cost-of-living 92.7 percent of seniors; $1,909.85 average check; cost-of-living 83.9 percent of seniors; $1,895.23 average check; cost-of-living Richtman, president and CEO of the National Committee to Preserve Social Security and Medicare, warned last month that the DOGE-led cuts to the SSA have already made it harder for seniors, people with disabilities, and their families to access the benefits they've earned.A recent survey echoes those concerns, revealing that 59 percent of working-age Americans fear Social Security may not be available by the time they prospect of further cuts at the SSA remains unclear, and several advocacy groups have launched legal actions seeking to reverse DOGE-ordered changes."When Social Security spending disappears from these communities, it's not just individual families that suffer," Ryan said. "Think of the 'trickle down.' Grocery stores, pharmacies, the small businesses that survive on that steady monthly flow of federal dollars."

If Congress doesn't save Social Security, Trump's cuts will cost you: $6,800 a year
If Congress doesn't save Social Security, Trump's cuts will cost you: $6,800 a year

Yahoo

time21-04-2025

  • Business
  • Yahoo

If Congress doesn't save Social Security, Trump's cuts will cost you: $6,800 a year

For nearly 100 years, the United States has maintained one of the world's more successful models of social insurance, protecting Americans from the death of a spouse or parent, disability and old age – essentially the risk of outliving one's savings. These are things most of us fear regardless of our means, and – despite the rhetoric – these are not welfare programs. Americans pay into them, and without Social Security, we all will bear more risks that will directly impact our wallets, and potentially the high quality of life we have become accustomed to since its creation. This is why touching Social Security has been viewed as a 'third rail' for decades, and it remains a primary point of contention at the charged town halls across the nation recently. Opinion: If you're not scared about Social Security, you should be You may not think of it when you look at a paystub, but the Old-Age, Survivors, and Disability Insurance (OASDI) line is doing some serious heavy lifting when it comes to many Americans' financial security. It is a premium that offers coverage from the risks that come from not being able to work. When we outlive our ability to work, lose a spouse, become disabled or have a dependent with a disability, Social Security programs provide benefits. Take our poll: It's been nearly 100 days of Trump. Do you think we're better off? | Opinion Forum Across America, the old age and survivors' insurance programs reduce the Supplemental Poverty Measure among those ages 65 and older by 33 percentage points, meaning without Social Security, more than 19.5 million adults would have to survive on incomes below the poverty line (less than $16,000 for a single person in 2025). Among all Americans, Social Security lifts 27.6 million people above the poverty line. Given the decline of defined benefit pensions, most workers today will have to rely on personal savings. With no guarantee of benefits for life, workers face greater risks of outliving their savings or a major downturn in the market. Social Security mitigates these risks. Opinion alerts: Get columns from your favorite columnists + expert analysis on top issues, delivered straight to your device through the USA TODAY app. Don't have the app? Download it for free from your app store. What would the average American need to do to make up for large changes to OASDI? We offer some estimates below, but the answer is straightforward: Save a whole lot more and spend a whole lot more for private insurance coverage. We also must prepare for the state to bear more of the costs of having more people in deeper poverty in our communities. This is how the impact breaks down in specific areas: Retirement. Without any legislative action by Congress, Social Security will have insufficient funds to provide for retirees by 2033. Based on actuarial projections, benefits will have to be cut by 21% immediately. The program will not be "broke" or have "nothing for future retirees." But benefit amounts will be reduced for current and future retirees. The average worker in the U.S. receives about $1,900 per month. This implies a need for current and future retirees to come up with $4,800 per year to maintain the earning power of today's Social Security benefits. Seniors will have to cut expenses, use up more savings and rely more on financial support from family members. Disability. For the 161 million workers in the U.S., the chance of developing a disability is not small; in fact, a quarter of today's 20-year-olds will experience a disability before retirement. For an average 40-year-old male, replacing Social Security disability insurance with private coverage would cost roughly $1,200 per year. An estimated 40% of workers have limited disability insurance through an employer, but this coverage offers less protection than Social Security. Moreover, private disability insurers screen applicants, charging some workers more or even denying coverage altogether. Coverage is likely to cost much more than $1,200 per year for some workers – if it is available at all. Social Security provides with the same benefit levels and rules for all workers. Survivors' benefits. As of December 2023, there were more than 5.7 million Americans (more than enough to be the 23rd largest state) receiving Social Security benefits due to a deceased spouse, child or parent. For an average 40-year-old male to purchase similar life insurance coverage privately, premiums would be over $500 per year. Of course, this private coverage is subject to medical exams, and policy renewals come with premium increases. While some private industry workers have limited access to life insurance benefits at work, Social Security survivors' benefits are especially important for lower-income workers with children who depend on their earnings. Supplemental Security Income. More than 7.4 million Americans receive more than $63.5 billion in annual payments from SSI. These payments average just over $700 per month for the poorest Americans, including people with disabilities, elderly individuals who had low-paying jobs, and children. If proposals to shift SSI from Social Security to the state occur, the average Wisconsinite would need to contribute $260 per person per year to make up the gap. In the end, if Social Security retirement benefits are reduced due to legislative inaction, Social Security survivors' and disability benefits are removed, and SSI's support for the poorest seniors and people with lifelong disabilities is terminated or handed off to the state, it will cost the average American more than $6,800 per year in added insurance premiums, increased need for savings and state tax increases. USA MapInfogram We estimate that this number is more than $7,000 per year in 12 states (highest in Connecticut at $7,279 per year) and is more than $6,400 in every state (lowest in Montana at $6,474 per year). This likely far exceeds any reasonable reductions in our payroll taxes, and ignores the costs that family members and communities may take on to support the most economically vulnerable. The insurance protection that Social Security programs provide has tangible economic benefits. Without these programs, we will all need to reassess our financial plans. J. Michael Collins is a professor in the School of Human Ecology and the La Follette School of Public Affairs at the University of Wisconsin-Madison. He is also an associate director at the Institute for Research on Poverty and a member of the National Academy of Social Insurance. Tyler Q. Welch is a PhD candidate in the Wisconsin School of Business' Risk and Insurance department at the University of Wisconsin-Madison. He is also a graduate research fellow at the Institute for Research on Poverty and an associate member of the National Academy of Social Insurance. An earlier version of this column originally appeared in the Milwaukee Journal Sentinel. You can read diverse opinions from our USA TODAY columnists and other writers on the Opinion front page, on X, formerly Twitter, @usatodayopinion and in our Opinion newsletter. This article originally appeared on Milwaukee Journal Sentinel: Social Security benefits cuts will cost you. Here's how much | Opinion

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