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The Social Security Administration (SSA) is facing a grave insolvency threat as more Americans begin claiming their government-funded retirement benefits, and millions of beneficiaries could face monumental cuts if action is not taken.
Social Security forms the bedrock on which millions of Americans fund their retirement plans.
In 2022, the SSA paid out retirement, survivor and disability benefits to 70.6 million beneficiaries in the U.S. Funded by a combination of taxes and government reserve funds, Social Security is by far the largest direct expense of the U.S. government's annual budget, amounting to $1.3 trillion, or five percent of the 2023 GDP.