Is Social Security Really Running Out of Money?
Millions of retired seniors today collect Social Security, and for many, those benefits serve as their main source of income. But last year's Trustees Report shed some unfavorable light on the state of Social Security's finances. Specifically, it reported that the program's trust funds are expected to run dry in 2035. As such, many working Americans and retirees alike are under the impression that Social Security is running out of money. But is that actually what's happening?
There are a number of factors working against Social Security at present. First, workers are exiting the labor force at a faster rate than those who are entering it. The result? The program is on the hook to pay more money in benefits than it takes in. Additionally, seniors are living longer these days, which means they're also collecting more benefits in their lifetime. That's a good thing for retirees, but a bad thing for a program with limited financial resources.
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Source Fool.com
