Latest news with #2034
SBS Australia
2 days ago
- Business
- SBS Australia
Australia remains firm on defence spending targets despite US pressure
NATO countries have fallen in line with a request from the United States to increase defence spending. It's a request Australia is familiar with, having been delivered earlier this year by US Defence Secretary Pete Hegseth to Defence Minister Richard Marles. But Mr Marles rebuffed the request then, and says events at the NATO conference in the Netherlands haven't changed the government's mind. He says this government has already lifted defence spending sufficiently. "Obviously, a very significant decision has been made here in relation to European defence spending and that is fundamentally a matter for NATO. We've gone through our own process of assessing our strategic landscape, assessing the threats that exist there, and the kind of defence force we need to build in order to meet those threats, to meet the strategic moment, and then to resource that. And what that has seen is the biggest peace time increase in Australian defence spending that we have seen in our history. Now, that is a story which is understood here." The increase Mr Marles is speaking of involves Australia lifting its defence spending from two per cent of gross domestic product to 2.3 per cent by the 2033-2034 financial year. The US has requested that commitment be lifted to 3.5 per cent. Some experts in Australia are calling for a lift to three per cent. The opposition's defence spokesman, Angus Taylor, hasn't named a number, but says defence spending is still insufficient under this government. "Well, there's a lot of areas in the Defence Strategic Review that are clearly underfunded. Our drone and counter-drone technologies, as the Leader of the Opposition, Sussan Ley, laid out yesterday. Making sure that the Henderson sub facility is properly-funded. The hardening of our northern facilities at a time like this incredibly important. Making sure we've got domestic missile manufacturing capability, as the government said they will do, but there's no sign of making progress on this. All of these are areas that have to be properly funded, alongside AUKUS- the submarines- and frigates. There is no shortage of things that need to be properly executed and properly funded, and they are not being right now under this government." Matthew Sussex is from the Strategic and Defence Studies Centre at the Australian National University in Canberra. He says the events at the conference in The Hague will put further pressure on the government's stance-with one caveat. "This also does increase the pressure on Australia to increase its defence spending. Whether it does or not is something, I think, is still a bit of an open question. And certainly I think there's no harm in waiting until what the American review into the AUKUS program actually says-the 30-day review that is due to report soon." Elsewhere at the NATO meeting, US President Donald Trump didn't show up to a joint meeting of Indo-Pacific partners who were present. Mr Marles says that didn't affect the quality of that meeting. "No, it was a really important meeting with the Secretary-General. And we re-affirmed in the meeting how important the two theatres are to each other. The point is made is that in Japan, in Korea, and in New Zealand, we have three countries which are deeply important in terms of Australia's strategic interests. In respect of all of them, we are really at a high point of our bilateral relationship, and we are working increasingly as a team. But we all see how significantly what is playing out in Europe is influencing the Indo-Pacific." But Mr Trump not showing up does play into the narrative that the government can't get a meeting with Mr Trump, especially after Prime Minister Anthony Albanese's meeting with him on the side of the G-7 conference in Canada was cancelled. More than five months into Mr Trump's second term as U-S President, no Australian minister has yet met with him face-to-face. Whether that hurts the government on a domestic political level is a matter in and of itself, but it's something the opposition is nevertheless keen to exploit. Mr Taylor says an Australian Prime Minister must invest time in building a personal rapport with whoever the President of the US happens to be at any given time. "Right now it seems that the Prime Minister is better able to get a meeting with the President of China than the President of the United States. The United States has fought with us in every major war, and that alliance is incredibly important to this country, regardless of who is leading the United States. That alliance really matters. The Prime Minister needs to get serious about the personal relationship that is necessary to nurture that alliance." There were some things proposed at the NATO meeting that Australia has agreed to. Australia will deploy a surveillance aircraft and 100 defence personnel to Poland for three months, ending in November, in order to provide visibility for key supply routes into Ukraine. On that front, the government has also slapped sanctions on a further 37 individuals and seven financial entities linked to key Russian industries, as well as it what it calls promulgators of Russian propaganda. And, Mr Marles has signed an agreement with the NATO Support and Procurement Organisation, which will increase co-operation in non-combat activities, including logistics, and capability acquisition.
Yahoo
2 days ago
- Business
- Yahoo
Social Security Is Facing Major Benefit Cuts: What You Can Do to Plan for Them
Social Security benefits could be slashed once the program's trust funds run dry. It's important to prepare for that possibility now. Workers can focus on building savings while retirees can rejoin the labor force, cut spending, and employ other strategies. The $23,760 Social Security bonus most retirees completely overlook › If you didn't catch the news that came out recently about Social Security, here's an update. And it's unfortunately not a good one. The Social Security Trustees reported that the program's combined trust funds are set to run dry in 2034. That's a year earlier than the trustees projected last year. And it means that Social Security could be one year closer to benefit cuts. The trustees also said that once Social Security's combined trust funds are emptied, the program will only be able to pay 81% of scheduled benefits. That's not a good thing at all for retirees. As it is, Social Security replaces only about 40% of an average earner's pre-retirement wages. A 19% cut on top of that could leave countless seniors with inadequate funds to cover their expenses. For this reason, it's important that everyone do what they can to prepare for Social Security cuts. Here's how to do that, depending on your current situation. If you're still working and, better yet, have a good number of years in the labor force ahead of you, you're perhaps not in such a bad place as far as Social Security goes. It's true that you may not get the complete benefits you're entitled to if cuts happen. But you also have many years to save so you can make up for reduced benefits. Let's say you're 32 years old and plan to retire at 67. Even if you haven't started building a retirement nest egg yet, you have a solid 35 years to accumulate savings. Fund a 401(k) or IRA with $500 a month starting now, and in 35 years, you could be sitting on about $1.034 million if your portfolio gives you a yearly 8% return, which is a few percentage points below the stock market's average. Even if you're older and don't have a 35-year savings window, you can still build up decent savings by prioritizing your nest egg in the coming years. Saving $500 a month over 15 years at an 8% return leaves you with $163,000, which could help make up for benefit cuts. And if you're able to save at a higher rate each month, you could end up with a much larger nest egg by the time retirement kicks off. Don't panic over Social Security cuts if you're already retired. You may have a few options for bettering your financial situation. First, you can see about getting a part-time job to boost your income. And if you don't like the idea of a set schedule, you could turn to the gig economy. You can also look at your spending and aim to shed expenses. If you own your home outright, for example, and it's worth $500,000, downsizing could make it possible to buy a replacement home for half that cost, allowing you to pocket the rest. You can also think about relocating to a part of the country where your Social Security benefits might give you more buying power. And if it's feasible, you could see if it makes sense to live in a multigenerational household with your grown kids and grandkids instead of on your own. There could be cost savings for everyone involved, plus the perk of being there for your family's milestones. Social Security cuts aren't set in stone. But at this point, everyone needs to plan for them. The sooner you do, the less of a blow they might deal to your retirement finances. If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known could help ensure a boost in your retirement income. One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these Motley Fool has a disclosure policy. Social Security Is Facing Major Benefit Cuts: What You Can Do to Plan for Them was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
2 days ago
- Business
- Yahoo
Social Security Is Facing Major Benefit Cuts: What You Can Do to Plan for Them
Social Security benefits could be slashed once the program's trust funds run dry. It's important to prepare for that possibility now. Workers can focus on building savings while retirees can rejoin the labor force, cut spending, and employ other strategies. The $23,760 Social Security bonus most retirees completely overlook › If you didn't catch the news that came out recently about Social Security, here's an update. And it's unfortunately not a good one. The Social Security Trustees reported that the program's combined trust funds are set to run dry in 2034. That's a year earlier than the trustees projected last year. And it means that Social Security could be one year closer to benefit cuts. The trustees also said that once Social Security's combined trust funds are emptied, the program will only be able to pay 81% of scheduled benefits. That's not a good thing at all for retirees. As it is, Social Security replaces only about 40% of an average earner's pre-retirement wages. A 19% cut on top of that could leave countless seniors with inadequate funds to cover their expenses. For this reason, it's important that everyone do what they can to prepare for Social Security cuts. Here's how to do that, depending on your current situation. If you're still working and, better yet, have a good number of years in the labor force ahead of you, you're perhaps not in such a bad place as far as Social Security goes. It's true that you may not get the complete benefits you're entitled to if cuts happen. But you also have many years to save so you can make up for reduced benefits. Let's say you're 32 years old and plan to retire at 67. Even if you haven't started building a retirement nest egg yet, you have a solid 35 years to accumulate savings. Fund a 401(k) or IRA with $500 a month starting now, and in 35 years, you could be sitting on about $1.034 million if your portfolio gives you a yearly 8% return, which is a few percentage points below the stock market's average. Even if you're older and don't have a 35-year savings window, you can still build up decent savings by prioritizing your nest egg in the coming years. Saving $500 a month over 15 years at an 8% return leaves you with $163,000, which could help make up for benefit cuts. And if you're able to save at a higher rate each month, you could end up with a much larger nest egg by the time retirement kicks off. Don't panic over Social Security cuts if you're already retired. You may have a few options for bettering your financial situation. First, you can see about getting a part-time job to boost your income. And if you don't like the idea of a set schedule, you could turn to the gig economy. You can also look at your spending and aim to shed expenses. If you own your home outright, for example, and it's worth $500,000, downsizing could make it possible to buy a replacement home for half that cost, allowing you to pocket the rest. You can also think about relocating to a part of the country where your Social Security benefits might give you more buying power. And if it's feasible, you could see if it makes sense to live in a multigenerational household with your grown kids and grandkids instead of on your own. There could be cost savings for everyone involved, plus the perk of being there for your family's milestones. Social Security cuts aren't set in stone. But at this point, everyone needs to plan for them. The sooner you do, the less of a blow they might deal to your retirement finances. If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known could help ensure a boost in your retirement income. One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these Motley Fool has a disclosure policy. Social Security Is Facing Major Benefit Cuts: What You Can Do to Plan for Them was originally published by The Motley Fool
CNET
3 days ago
- Business
- CNET
Social Security's Crisis Point Is Coming Up Fast. Here's the Latest
Social Security reserves are drying up faster than expected. Here's what you should know. Getty Image/ Zooey Liao/ CNET Millions of Americans rely on Social Security as supplementary income, and for many, it's their lifeline. According to the latest annual report from the Social Security Trustees, the program is in worse shape than expected just months ago, with trust fund reserves now projected to run out a year earlier -- in 2034. To be clear, monthly Social Security payments will still go out, but recipients could see nearly a 25% cut in benefits. That's troubling, especially for those who rely on it as their main income source. Turning things around would require swift action from lawmakers. The overarching issue for the Social Security program is that it's paying out more money than it's receiving from the current workforce, a situation known as an actuarial deficit. The annual report details some of the reasons that the trustees project the trust funds to run out sooner than expected, including lower birthrates and newly implemented initiatives like the Social Security Fairness Act. The annual report is an important health check on the current state of the Social Security program, but it also lays the groundwork for policymakers to make funding changes -- reducing the potential harm to those who rely on monthly payments, many of whom are already struggling financially. Below, we'll go over some of the details found in the report, including the reasoning for the updated projections and what it means for you if Social Security can't continue to pay full benefits to recipients -- or when the trust funds become "insolvent." For more, here's what you should know about paper Social Security checks going away. How is Social Security funded anyway? Social Security is funded through a dedicated payroll tax, meaning that employers and employees each pay 6.2% of wages up to the taxable maximum for the given year. For 2025, the maximum is $176,100. If you're self-employed, your tax rate is doubled to 12.4%. The dedicated tax dollars go to the Social Security trust funds -- comprising the Old-Age and Survivors Insurance and the Federal Disability trust funds -- which are managed by the US Treasury and used to pay retirement, disability and survivor benefits. Any surplus is invested in special government securities. The main issue is with the OASI trust fund, which is expected to be depleted in 2033 -- at which point it will only be able to pay about 77% of scheduled benefits. The DI trust fund reserves aren't expected to be depleted within the 75-year period that ends in 2099. What's causing the Social Security fund to run out of money? Social Security is running out of funds for a number of reasons. However, a major factor is the growing number of Baby Boomers retiring compared to the size of the current workforce, which can't pay in enough to keep the Social Security fund solvent. In addition to the growing number of retirement applications, the Social Security Fairness Act, which went into effect in January of this year, has further strained the program. The act repeals two provisions that previously prevented certain types of public workers from receiving benefits. With those provisions out of the way, Social Security is responsible for ongoing payments and billions of dollars in back payments for qualifying individuals. Another factor is the growing actuarial deficit, which has widened since the 2024 annual report that had projected insolvency in 2035. The actuarial deficit is the difference between the Social Security's payment obligations versus the flow of money into the Social Security trust fund. Last year, the deficit was 3.50%, where it has since grown to 3.82%. These deficit projections are based on government estimates extending through the end of the century. The latest annual report also took into account lower birthrates for a longer period of time compared to last year's report and how much labor contributes to the GDP. What would it take to make Social Security solvent? Closing the gap and making the Social Security program solvent would require a cut to benefits, a permanent increase to the payroll tax or a combination of the two. The annual trustees report lays out potential paths to make Social Security solvent until 2099. One path would be to introduce an immediate, permanent payroll tax hike of 3.65% to be shared between employers and employees. Another path would be to immediately and permanently cut all scheduled and future Social Security benefits by 22.4%. What happens after the Social Security fund becomes insolvent? If nothing is put in place to fill the gap for Social Security funds, 2034 will be a tough year for many. It's important to remember that Social Security payments won't suddenly stop -- but they will be reduced. After the Social Security trust funds are depleted, existing payroll deductions will still be able to pay up to 81% of benefits. For more, be sure to check out the Social Security and SSDI cheat sheet.
India Today
20-06-2025
- Politics
- India Today
Judiciary shouldn't override public policy: Court backs slum rehab on open land
The Bombay High Court has refused to strike down a provision under the Development Control and Promotion Regulations (DCPR) 2034, which allows the use of public open spaces for slum redevelopment projects. The court said that decisions related to urban planning should be left to the authorities and not the judiciary unless there is a clear violation of legal or constitutional bench of Justices Amit Borkar and Somasekhar Sunderasan delivered the verdict while hearing a petition filed by an alliance of NGOs in 2002. The petition challenged the use of open spaces, meant for parks, gardens, and playgrounds, for slum rehabilitation schemes. The petitioners argued that the policy went against the principles of sustainable development and the public trust doctrine, which protects public assets from private court examined regulation 17(3)(D)(2) of the DCPR 2034, which permits reserved open spaces above 500 square metres to be used for slum redevelopment. The policy requires that at least 35 per cent of the ground area be left vacant and continue to serve public purposes. The bench said, "The regulation shows a sincere attempt to balance two competing rights, exactly as the Constitution requires. It supports a vision of environmental well-being that also respects human dignity, and promotes a model of urban growth that includes the poor, rather than pushing them to the city's margins."advertisementIt also said that courts must respect the limits of judicial review. "This does not mean that courts have no role. As constitutional protectors, courts must step in where a policy violates the law, infringes fundamental rights, or is arbitrary and unfair," the bench added."But, even while doing so, the court must remain within the boundaries of judicial review and avoid functioning as a policymaking authority, particularly when the government has followed due process and attempted to balance competing interests in an open and fair manner," the court further the High Court had passed an ad-interim order restraining the government from approving any new slum rehabilitation schemes on such lands without court permission. The interim order remained in effect for nearly two decades, during which time several developers and housing societies had to approach the court to seek Watch IN THIS STORY#Mumbai
