Exclusive Content:

Easy Homemade Apple Pie Granola Recipe

This yummy homemade apple pie granola recipe is perfect...

Surprised by Blackstone’s limit on REIT withdrawals? Advisors shouldn’t be

If advisors who directed clients to put money into...

It’s time to counsel clients on critical year-end tax considerations

It's time to schedule year-end tax conversations with clients...

Treasury says Social Security cuts would ‘decimate’ retirees

A senior U.S. Treasury official warned Tuesday that cuts to Social Security and Medicare would “decimate” the standard of living for American retirees.

“These programs are the cornerstone of the American retirement system, and it is difficult to imagine either program sustaining substantial cuts in resources without dramatically impacting millions of beneficiaries,” Ben Harris, the Treasury’s assistant secretary for economic policy, said at an event in Washington.

While Harris didn’t mention the looming political battle, his remarks came as GOP lawmakers and the Biden administration are headed for a showdown over the government’s legal borrowing limit. Republicans have said they might demand large spending cuts — including to Social Security and Medicare, the retirement and health programs for the elderly and disabled — in exchange for raising the debt ceiling.

“Roughly half of retirement-age households depend on Social Security benefits for all or almost all of their income,” Harris said. “Cuts to Social Security would decimate their standard of living.”

He said Medicare carried equal weight and that “any marked cuts to the program would undoubtedly mean undue suffering for the beneficiaries who depend on the program for critical healthcare.”

President Joe Biden said on Nov. 10 that he’s willing to “work with Republicans,” but wouldn’t accept cuts to Social Security and Medicare.

Harris’s comments, delivered at an event hosted by the Brookings Institution, were part of a wider speech on how conditions for U.S. retirees have deteriorated in recent decades.

Almost 40% of those born in the 1980s won’t be able to maintain their pre-retirement standard of living into their 70s, he said, citing data from the Urban Institute.

Latest

Easy Homemade Apple Pie Granola Recipe

This yummy homemade apple pie granola recipe is perfect...

Surprised by Blackstone’s limit on REIT withdrawals? Advisors shouldn’t be

If advisors who directed clients to put money into...

It’s time to counsel clients on critical year-end tax considerations

It's time to schedule year-end tax conversations with clients...

Don't Miss

7 Best Group Gift Ideas When You’re on a Budget

Here are the best and cheapest group gift ideas! The...

Irresistible Muddy Buddies

Rice cereal coated in melted peanut butter and chocolate,...

$1.3B Cetera branch launches outsourcing and succession venture

Cetera Financial Group is investing in one of its...

Crypto increases use of tax loss harvesting

The more governments, especially in the U.S., try to tax crypto, the more crypto owners will use tax loss harvesting to compensate. This is according...

Ex-LPL execs Kalbaugh and Morrissey take new gigs in changing industry

Two former LPL Financial executives closely associated with the firm's expansion into the industry giant that it is today have started new respective roles. Andy...

The 2023 crypto outlook for financial advisors after a trying year

Crypto may seem like the last thing financial advisors want to talk with clients about in this environment, where each day seems to bring...