Warren Buffett sends blunt message on Social Security

Social Security is a program that millions of retired Americans rely on for income. In fact, many seniors rely on Social Security far more than they should.

Among beneficiaries ages 65 and over, almost 40% of men and 44% of women get half of their income or more from Social Security. Plus, many seniors get all of their monthly income from Social Security.

But with the average retiree only getting about $2,000 in monthly benefits, that leaves many older Americans in the lurch.

Meanwhile, stubborn inflation has been battering seniors in particular, forcing many retirees to make hard choices.

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For some, that means having to choose medications that are less than optimal to save on costs. For others, it means going back to work at a time when they deserve to be fully retired and done actively earning a living.

Warren Buffett sends a blunt message on Social Security.

Image source: Paul Morigi/Getty Images for Fortune/Time Inc.

Anyone who's been following the news on Social Security has surely heard by now that the program is facing its share of financial troubles. And the program's most recent Trustees report confirms it.

Social Security's Old-Age and Survivors Insurance trust fund is expected to run out of money in 2033, based on recent projections. Once that happens, seniors on Social Security could be looking at a staggering 23% cut to their monthly benefits.

That's hugely problematic, because as it is, many retirees are having a difficult time making ends meet based on their current Social Security paychecks.

There are many seniors who do not manage to bring savings into retirement, and through the years, employer pensions have become a lot harder to secure. That’s left many of today’s retirees overly dependent on Social Security.

People in this situation simply cannot afford a 23% pay cut — especially not at a time when inflation does not seem to be cooling off. And with tariffs thrown into the mix, it's possible that living costs will rise even more in the near term.

Investing legend Warren Buffett is clearly not someone who has to rely on Social Security, given that he has billions of dollars in wealth. However, the financial giant is aware that millions of older Americans today depend on those monthly benefits to make ends meet.

The threat of Social Security cuts has been looming for decades. And during the 2005 Berkshire Hathaway annual shareholder meeting, Buffett made a point to sound a major warning on Social Security.

“I basically believe that anything that would take Social Security payments below their present guaranteed level is a mistake,” he said.

As the possibility of benefit cuts gets closer, that message rings even truer today.

The reality is that lawmakers can make changes to potentially prevent Social Security cuts. These include changes to the way employee wages are taxed and changes to the rules of claiming benefits.

More on retirement:

But they no longer have the luxury of time on their side.

At this point, Social Security is within a decade of severe benefit cuts. Lawmakers need to heed Buffett's warning and act quickly if they want to avoid a widespread senior poverty crisis.