New analysis conducted by AARP shows that 784,000 Granite State workers who are paying into Social Security today stand to lose 25 percent of their benefits if the President and Congress don’t act.
While the revenue shortfall faced by the Social Security system that could result in cuts is not imminent, the Social Security Trustees reported in June that across-the-board cuts of nearly 25 percent would take effect in 2034 if no action is taken.
“Doing nothing is not an option. How long will it take our leaders to act?” said AARP New Hampshire State Director Todd Fahey. “The presidential candidates need to show they can lead on this issue and give voters real answers on how they will update Social Security for future generations.”
That is why AARP launched Take A Stand – a national campaign focused on pressing presidential candidates to show leadership on Social Security. Take A Stand volunteers in all corners of the Granite State have been clear with all the candidates who seek to represent us in Washington: When it comes to protecting and updating Social Security, soundbites aren’t good enough.
Consider what a 25 percent cut to Social Security benefits would mean for future retirees. If such a cut went into effect today, it would reduce incomes, push more Granite Staters into poverty, and reduce money available for basic needs like food, health care and utilities.
- The average annual family income of New Hampshire retirees would be cut by $4,700. For some, losses would be much higher.
- The poverty rate of older Granite Staters would more than double. About 11,600 more elders would be pushed into poverty.
- Granite Staters typically spend $8,500 a year on groceries, $5,800 a year on utilities and $9,100 on health care. A cut of nearly 25 percent would force households to make painful choices about what to buy and what to forego – at a time when the cost of necessities like food and prescription drugs continues to rise.
“This snapshot of the potential effects of inaction on future generations makes it abundantly clear that Social Security needs to be a top priority,” said Fahey. “Voters deserve to know how the candidates’ plans will affect families, how they will make their plans a reality, and who supports or doesn’t support updating this vital program. Most importantly, we need leadership from the next President and support from the leaders we send to Washington to serve and represent us.”
AARP asked the two presidential candidates what they would do to update Social Security and they responded in the July issue of the AARP Bulletin. For more information, go to 2016takeastand.org.