A report by the National Academy of Social Insurance claims that changes made during the 1980s by Congress to the Social Security program will cut retirement benefits by 19% for those who were born in 1960 and later.
More cuts, the group said, will undermine the basic economic security of future retirees.
"Social Security benefits are already being cut more than many people realize," said Virginia Reno, NASI's vice president for income security and a co-author of the report. "Cutting benefits further is not necessary to preserve Social Security for future generations. Other alternatives merit consideration by policymakers."
Although the number of Americans receiving Social Security benefits will increase as a percentage of the population from 17% to 25% between 2010 and 2085, Social Security payments as a percentage of gross domestic product are projected to rise only from 5% to 6% during the same period.
NASI recommends that by adopting a balanced long-term revenue plan it is possible to cover the projected shortfall facing Social Security while making modest improvements in the program for three vulnerable groups: low-paid workers, the oldest beneficiaries and students who lose parental support due to death or disability. The revenue plan could include gradually lifting the cap on FICA payroll tax contributions to again cover 90% of earnings as Congress intended and scheduling small FICA rate increases over 20 years starting in 2015.
