(FinancialHealth.net) – The 2019 Social Security Trustees Report warns that the program’s trust funds will be depleted in 2035 if we stay on the current path. This could leave many people wondering if the program is going to go broke. Well, there’s good news and bad news.
The trusts are becoming insolvent. That’s worrisome because the trusts pay from the difference between the revenue Social Security takes in and the payments it sends out. They also pay for administrative costs. Longer life expectancies and fewer people entering the workforce to make up for those retiring means less money going into those trusts.
Social Security isn’t going to disappear. Most of its money comes from payroll taxes, and as long as we have a workforce, revenue will come in. The payments will get smaller, though, with future retirees receiving checks for about 80% of what they’re owed.
~Here’s to Your Financial Health!
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