The Social Security Trust Fund Could Run Dry by 2032. Should You Rethink Your Retirement Strategy?
Retirees could see a big cut in benefits if things don't change soon.
The Social Security Trust Fund Could Run Dry by 2032. Should You Rethink Your Retirement Strategy?
Overview
Workers in their 50s and 60s may be facing a serious retirement challenge in the near future. Social Security is currently paying out more in benefits than it receives in tax revenue and interest income each year. In six years, the program might not have enough money to pay out full retirement benefits.
The latest Trustees Report outlines a base case in which Social Security's Old Age and Survivors Insurance Trust will run dry before the end of 2032. That's a few months earlier than last year's projection that it would deplete its funds in early 2033.
Details
When that happens, the program is expected to pay only 78% of the benefits due. Over time, payouts will continue to fall based on the actuaries' projections. So workers who were relying on Social Security in the next decade may need to rethink their retirement strategy.
Source
Originally published at www.fool.com.
