There has been a lot of news reports recently about what to do about Social Security. There has long been talk that the funds will run dry as more and more American retire and begin drawing Social Security Benefits. A recent article discusses how benefits will need to be reduced by as much as 30% by 2030. Here is an excerpt of the article:
Social Security may be in worse shape than many advisors (and retirees) thought. The Congressional Office Budget is now reporting that the combined Social Security retirement and disability trust funds will be depleted in fiscal year 2029—five years earlier than the trustees of the two funds had projected earlier this year in their annual report.
As a result, the CBO is expecting that Social Security benefits will need to be cut by 31% beginning in 2031 if no changes are made to the program. The Social Security Trust Fund had previously projected a 21% reduction in benefits beginning in 2034. The CBO estimates that the disability trust fund will be “exhausted” by 2022, and that the Old Age and Survivors Insurance trust fund–commonly known as Social Security–would be exhausted by 2030. READ COMPLETE ARTICLE
For many Americans, all of these reports of financial insolvency for Social Security is very troubling. Many Americans only have Social Security to look forward to in terms of retirement income, so it is no surprise they wonder what they will do if they do not receive Social Security retirement as promised by the United States Government.
A new President is getting ready to take office and appointing individuals that will need to figure out a way to save Social Security income for future generations. Unfortunately, there is talk of reducing taxes on businesses, which according to government reports, payroll taxes account for up to 96% of revenue deposited into the Social Security trust.
I’m sure local Social Security offices are going to continue to be inundated with visitors looking for more information about their Social Security benefits.