Warren Buffett’s longtime Social Security warning is coming to fruition, with retirees facing an $18,000 annual cut

Additionally, SEE FULL BIO Warren Buffett has long had warnings for retirees

Kevin Dietsch/Getty ImagesIn just seven years, Social Security will reach a fiscal cliff that could leave millions of American retirees with drastically reduced benefits, according to a recent analysis by the Committee for a Responsible Federal Budget (CRFB)

How painful (noteworthy indeed)

On the other hand, This's not the first time the CRFB has warned this, and it’s a common refrain from no less than the Oracle of Omaha himself: famed investor Warren Buffett (an important development)

This analysis suggests that ticking clock Social Security and Medicare, the two bedrock grams supporting older Americans, are drawing closer to insolvency than many might realize

At that point, the law dictates that payments must be limited to the amount coming in from payroll taxes—resulting in an immediate, across-the-board benefit reduction

What the re reveals is analysis reveals pain would be widespread but would vary by income and household type

On the other hand, Major cuts are headed for social security, the CRFB says

Committee for a Responsible Federal Budget While the dollar cut is smaller for lower-income households, the relative burden is even more severe, devouring a larger of retirement income and past earnings

Furthermore, However, What’s causing the crisis

Social Security is funded by a dedicated payroll tax, but the gap between what goes out in benefits and what comes in through taxes is growing

The newly enacted One Big Beautiful Bill Act (OBBBA) has accelerated the timeline by reducing Social Security’s revenue through tax rate cuts and an expanded senior standard deduction

According to CRFB, these policies increase the necessary benefit reduction by one percentage point; if the changes become permanent, the benefit cuts would be even deeper

Despite these dire jections, many policymakers have pledged not to alter Social Security, mising to keep benefits untouched, amid market uncertainty

At the same time, But if nothing changes, the law automatically enforces cuts when the trust fund runs dry

This tells us that CRFB report urges policymakers to be candid the situation and to work towards bipartisan solutions that secure Social Security’s future

The retiring Berkshire Hathaway CEO has stated that reducing Social Security payments below their current guaranteed levels would be a grave mistake, and urged mpt Congressional action, in today's market environment

Moreover, Buffett, who has signed the Giving Pledge and has advocated for higher taxes on higher earners, has criticized the cap on income subject to Social Security taxes, arguing that higher earners—including himself—should contribute more

He’s also suggested that Social Security’s finances could partially be eased by raising the retirement age, with the 95-year-old legend himself working well beyond the standard end of most careers

The evidence shows s board has consistently included former members and directors of key budgetary, fiscal, and policy institutions, such as the Congressional Budget Office, the House and Senate Budget Committees, the Office of Management and Budget, and the Federal Reserve

The CRFB regularly duces analyses of government spending, tax posals, debt and deficit trends, and trust fund solvency (such as Social Security and Medicare), as well as recommendations and scorecards for major fiscal legislation

What the re reveals is CRFB has consistently advanced a centrist position on budgetary matters, regularly advocating for reducing federal deficits and controlling the growth of national debt

Meanwhile, The organization has often criticized large spending bills that are not offset by reductions elsewhere, as well as tax cuts that are not revenue-neutral

What the re reveals is think tank favors reforms to federal “entitlement” grams, especially Social Security and Medicare, aiming to make them fiscally sustainable, an emphasis that has drawn criticism from the left, in light of current trends

For example, Paul Krugman characterized it as a “deficit scold” when he was still with The New York Times (noteworthy indeed)

Additionally, In the Social Security sphere, the CRFB has supported or posed ideas raising the retirement age, adjusting cost-of-living increases (using the chained CPI), increasing the amount of wages subject to payroll tax, and gressive indexing (where benefits grow more slowly for higher earners)

They have also weighed posals for new revenue s and some means-testing of benefits

On the right wing, the CRFB’s posed reforms to Social Security have drawn criticism for, as Charles Blahous of the Manhattan Institute put it, creating a structure more “welfare” than an earned income benefit

Still, the CRFB is widely respected in policy circles as a knowledgeable, data-driven budget watchdog, with a long track record of analysis and advocacy for sustainable fiscal policy

For this story, Fortune used generative AI to help with an initial draft

Conversely, An editor verified the accuracy of the information before publishing, in this volatile climate

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