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Most Older Americans Say Social Security Cuts Would Hurt Their Financial Stability. But How Likely Are Those Cuts?
If you've been following Social Security news, you may be aware that the program is facing some serious fiscal challenges. In the coming years, Social Security is expected to spend more on scheduled benefits than it collects in payroll tax revenue. This is due largely to the substantial number of baby boomers expected to exit the workforce in short order.
Social Security has trust funds it can tap to keep up with scheduled benefits -- but only to a point. And once those trust funds run dry -- which could happen as soon as 2034, according to recent projections -- the program may have no choice but to implement benefit cuts. Once that happens, Social Security recipients could see their monthly checks reduced by 20% or more.
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