The Social Security Math Just Got Worse for Future Retirees
It's time to prepare for potential changes.
Overview
If you're counting on Social Security to cover a large share of your retirement expenses, the latest projections from the program's Trustees should read like bad news. In their latest report, the Social Security Trustees say the program's Old-Age and Survivors Insurance Trust Fund -- which pays retirement and survivor benefits -- is now expected to run out of reserves in late 2032.
If lawmakers fail to act before then, incoming payroll tax revenue may only cover about 78% of Social Security's scheduled benefits, resulting in an automatic 22% cut for current and future retirees. And while that doesn't mean that Social Security is going bankrupt, a cut that drastic could deal seniors a huge financial blow.
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Details
Source
Originally published at www.fool.com.