This Possible Social Security "Fix" Would Act as an Indirect Benefit Cut to Millions of Americans
This could be a game changer for your retirement plan -- and not in a good way.
Overview
If you're counting on Social Security to cover a large share of your retirement expenses, the thought of a 22% benefit cut in six years should be terrifying.
But that is precisely what the numbers say will be necessary if the program's trust fund runs dry at the end of 2032, which it's on track to do. At that point, barring any changes, Social Security's only source of funding will be fresh wage taxes, which the Trustees estimate will only be enough to cover 78% of what American workers have been promised.
Details
Fortunately, it's pretty unlikely that matters will play out quite that way. Washington is aware of the problem, and Congress will almost certainly step in at some point before 2033 to keep the program going for future generations. But we don't know yet what the fixes they will implement will look like.
Source
Originally published at www.fool.com.