Former Treasury Secretary Jack Lew Urges Lawmakers to Prepare for Social Security Reform
Former U.S. Treasury Secretary Jack Lew warned that Congress must begin addressing the looming funding shortfall of the Social Security trust fund, which is projected to run out in late 2032 unless reforms are enacted. Speaking on CNBC's 'The Exchange,' Lew emphasized the need for a bipartisan approach similar to the one taken during major reforms under President Ronald Reagan in 1983. Lew noted that while Congress may not be eager to tackle Social Security issues now, delaying action will make solutions more difficult as the trust fund nears exhaustion. The program currently supports over 75 million Americans and is facing rising costs due to an aging population and increased benefit payouts in recent fiscal years. According to projections from Social Security's trustees, without reform, benefits would be reduced to about 78% of scheduled payments by late 2032 if the retirement trust fund runs out. However, payroll tax revenue will continue to support some level of benefit payments even after that point.
