Several pensioners who live on restricted incomes follow strict monthly spending limits. What would occur if, however, any of the most dependable monthly payments began to arrive every 6 weeks?
When Social Security’s surplus is permitted to fall out and the agency can give out 77% of its payments to elderly people, pensioners may address this situation in ten years. Benefits may only be given from assets in the trust money, according to the law.
So, Charles Blahous, an economist and associate research strategist at the Mercatus Center at George Mason University, explained to Yahoo Finance, “If there won’t be enough assets in the trust funds for sustaining benefit funds, the paychecks are not paid out.”
“In reality, it’s an overall benefit cut, but it’s implemented not by distributing fewer checks more frequently than before, but rather by issuing larger checks less frequently. It would represent a 25% reduction if you received 9 payouts instead of the 12 you were used to receiving throughout the year.